DC Metro Home Prices Tie Record High in June

Townhome median price sets new record; Double-digit growth for new listings for the third straight month

OVERVIEW

Several key market indicators continue to trend upward in the Washington DC Metro Area.  Sales and new contracts had double-digit growth in June and are now at multi-year highs.  The inventory shortage also continues to shift for the region.  While the number of active listings remains historically low, new listings are surging, rising at a double-digit rate relative to last year for the third consecutive month.  Many of these new listings are likely being purchased the same month they are listed, as the median days-on-market remains at its housing-boom level of nine days.  This strong demand is pushing up the median sale price.  The Washington DC Metro Area tied the record high for median sales price in June. 

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The District of Columbia eclipsed last month’s record high by $39,000.  Demand for smaller units in the market continue to drive much of the overall sales growth as evidenced by consistently strong gains in condo and townhome sales.  The demand for townhomes has been particularly strong.  Townhomes led all property segments in sales and median price growth.  The median sales price for townhomes in the region is at an all-time high, and the number of active townhome listings is at an all-time low.  The conditions appear ripe for continued growth in the region’s housing market, as the rise in new listings will help meet some of the pent up buyer demand.  Sellers are noticing the higher price-points compared to the past several years, which is also fueling this growth.

CLOSED SALES

Third consecutive month of double-digit sales growth for the region, townhome sales highest in three years.

There were 5,237 sales in June in the Washington DC Metro Area, 12.3 percent higher than a year ago, and the highest of any month in three years.  Sales are only up 2.9 percent from last month, which is below the 10-year average change of 13.2 percent from May to June.  The region posted a seven-year May high in sales last month, which could partially explain the modest growth from last month relative to the average.   Townhomes posted the strongest sales growth of all property segments, rising 20.6 percent from this time last year.  There were 1,341 townhome sales June, which is the highest June-total since 2010.  Condo sales jumped 15.9 percent from last June, and the number of single-family detached sales rose 6.7 percent.

PRICES

Region ties record high for median price, and townhomes set new record.  DC median price surges.  At $440,000, the median sale price in the Washington DC Metro Area is 10.0 percent higher than this time last year, a gain of $40,000.  The median sale price is now tied with the highest median sale price on record for the region, which was set in June 2007.  Townhomes led all property segments in price growth, up 12.3 percent from June 2012, a gain of over $45,000.  The low inventory of homes for sale, coupled with consistently strong demand, is playing a major role in the record price levels.  The median sale price for townhomes is now $415,000, the highest on record for the region.  The median price for single-family detached homes in the region increased 10.9 percent, a gain of $55,000.  The median sale price for condos rose 8.9 percent, a gain of $25,000 from last year.

At the jurisdiction level, the District of Columbia led in terms of growth rate, with the median sale price up 16.3 percent, a gain of $74,000.  This growth propelled the median price in the District to a new record high of $529,000, exceeding the previous record set last month by $39,000.  Arlington was the only jurisdiction with a decline in median price, falling 2.7 percent from June 2012.

NEW CONTRACTS

New contract totals are back to their housing boom levels for all property segments, condos lead in growth.

There were 5,434 new contracts signed in June, up 6.8 percent from this time last year, and the highest June total since 2005.  New contracts fell 8.7 percent from May, however this is in line with seasonal patterns.  Condos led all property segments in growth, rising 14.3 percent from June 2012, a gain of 173 contracts.  New contracts on townhomes and single-family detached homes rose 6.9 and 3.3 percent respectively.  All property segments posted their highest June-total for new contracts since 2005, a clear indication that demand remains strong in the Washington Metro Area housing market.

INVENTORY

Overall inventory remains low, however new listings post double-digit growth the third consecutive month.

There were 8,281 active listings in the DC Metro Area at the end of June, a drop of over 2,000 listings from this time last year.  Active listings continue to decline across all property segments relative to last year, and are at their lowest June-level in eight years for single-family detached and condo properties.  There were 1,379 townhome listings, which is the lowest June-level on record, with data available back to 1997.  Despite the persistent decline in active listings, new listings are once again showing signs of life.  There were 6,180 new listings in June, 10.6 percent higher than this time last year, and the third consecutive double-digit growth for this indicator.

Condos continue to lead all property segments in new listing growth, rising 17.5 percent from last June.  New listings of single-family homes rose 8.8 percent, and townhome listings rose 7.7 percent from this time last year.  The persistent decline of inventories concurrent with the recent surge in new listings indicates that demand in the market is absorbing the influx of inventory.  Based on the historically low median days-on-market, it is possible that many of the new listings are going to contract the same month they are listed.  For the second straight month the median days-on-market for the DC Metro Area is nine days, the lowest level of any month since the peak of the housing boom in the summer of 2005.

About the RBI Metro Housing Market Update

The DC Metro Area Housing Market Update provides unique insights into the state of the current housing market by measuring the number of new pending sales, trends by home characteristics, and key indicators through the most recent month compiled directly from Multiple Listing Service (MLS) data in RBI’s proprietary database. The bulk of this report’s content is readily available, down to the ZIP code level of granularity, via interactive charts and reports offered via rbiEXPERT, a premium subscription service offered to real estate professionals interested in growing their business with the help of industry-leading and user-friendly analytics. The DC Metro Area housing market includes: Washington, D.C., Montgomery County and Prince George’s County in Maryland, and Alexandria City, Arlington County, Fairfax County, Fairfax City, and Falls Church City in Virginia.