DC Metro Sees Double-Digit Price Growth for Third Straight Month

Continued increases in sales and new contracts; Double-digit growth for new listings for the fourth straight month

OVERVIEW

Demand in the Washington DC Metro Region remains strong in the summer months, as shown by increases in sales and pending contracts.  Inventories continue to decline, but the pace has slowed, bolstered by new listings.  High demand and low supply contributed to median sale price gains throughout the region.   All counties in the region had median sales price increases in July, and the median price for the region as a whole reached its highest July-level since 2009.  The year-to-date median price is nearly 10 percent higher than over the same period in 2012. The median days-on-market continues to be historically low, and is now at its lowest July-level since 2005.  While the number of sales and new contracts decreased from June, this is typical of summer seasonal patterns and the decline was smaller than in past years.  The Washington DC Metro Region housing market continues to show strength, with increases in new listings helping to meet pent up demand.  Increasing prices may encourage potential sellers to list their homes, continuing the growth in new listings.

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CLOSED SALES

Fourth consecutive month of double-digit sales growth for the region.  There were 4,953 sales in July in the Washington DC Metro Area, 18.9 percent more than a year ago, and the highest July-level since 2006.  Due to seasonal factors, the number of sales decreased 5.4 percent from last month, but the decline is slower than the 10-year average June to July decrease of 10.7 percent.  Single-family detached homes and townhomes had the strongest sales growth of the property segments, each rising 19.6 percent from this time last year.  This is the largest year-over-year growth rate for sales of single-family detached homes in over a year.  Condo sales increased 17.0 percent from last July, which is the sixth consecutive month of double-digit growth for this segment.

PRICES

Highest July-level median price since 2005, all jurisdictions in the region post price gains relative to last year  At $425,000, the median sale price in the Washington DC Metro Area is 10.4 percent higher than this time last year, a gain of nearly $40,000, reaching its highest July-level since 2005.  The year-to-date median sale price of $400,000 is 9.6 percent higher than over the same period last year (+$35,000). Townhomes led all property segments in median price rate of growth, increasing 11.8 percent from July 2012 for a gain of $42,000.  The median price for detached homes in the region increased almost as much as townhomes, 11.7 percent, for a gain of $56,750.  The median sale price for condos rose 5.1 percent, a gain of $14,000 from last year.  At the jurisdiction level, Falls Church City had the highest growth rate in median sales price, increasing 23.5 percent from this time last year; although its 21 sales accounted for less than 0.5% of all sales in the region.  Prince George’s County had the second highest growth rate in the region, increasing 19.5 percent from July 2012.  This was the highest year-over-year increase in median sales price in nine months for Prince George’s County, bringing its median sales price to its highest level since the end of 2009.

NEW CONTRACTS

Fourth consecutive month of increases, condos lead in growth.  There were 5,013 new contracts signed in July, up 9.7 percent from this time last year, and the highest July total since 2005.  New contracts fell 7.7 percent from June, which is in line with seasonal patterns.  This month-over-month decrease is also milder than it was during the past three years, when the change from June to July was between negative 10.2 and negative 10.9 percent.  Condos led all property segments in growth, rising 22.6 percent from July 2012, a gain of 250 contracts.  New contracts for single-family detached homes and townhomes increased 5.8 and 5.2 percent, respectively.  All property segments posted their highest July-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; new listings post highest growth since April 2010.  There were 8,391 active listings in the DC Metro Area at the end of July, a decrease of 13.0 percent, or 1,259 listings, from this time last year.  Active listings continue to decline across all property segments relative to last year, and are at their lowest July-level in eight years for single-family detached and nine years for condo properties.  There were 1,473 townhome listings, which is the lowest July-level on record, with data available back to 1997.  Despite the decline in total active listings, the pace of the decline is slowing and is the smallest year-over-year decline in nearly two years.

New listings have increased by 26.9 percent from this time last year, for a total of 5,812 new listings in July.  This is the fourth consecutive month of double-digit growth for this indicator and the highest increase since April 2010.  Condos continue to lead all property segments in new listing growth, rising 29.7 percent from last July.  New listings of single-family homes increased 27.3 percent, and townhome listings increased 23.6 percent from this time last year.  The decrease in active listings despite the increases in new listings could indicate that demand for new units is strong enough to absorb the supply of new listings.  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.  The median days-on-market for the DC Metro Area is 12 days, the lowest July-level since the peak of the housing boom in 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.