The Greater Capital Area Association of Realtors has
released the most recent market report for houses in DC and it’s striking what
it shows. (Click here for the report.)
The market for houses in Washington, DC has shifted to a seller’s
market. Indications of this come from
both the supply side with a decrease of 34.7% in available houses to buy versus
last year and from the demand side with a .2% increase in the number of
contracts accepted this year vs. last.
Supply Side
Typically in DC the inventory of homes to sell rises from December until May and then slowly drops throughout the summer before a small autumn bump. But, for the first time in over eight years the available inventory is lower in May than it was in December.
Typically in DC the inventory of homes to sell rises from December until May and then slowly drops throughout the summer before a small autumn bump. But, for the first time in over eight years the available inventory is lower in May than it was in December.
The current level of available homes is down 34.7% from the
same month in 2011 (814 vs. 1,247). But the majority of that decline happened
from September 2011 through December of 2012 when the inventory plummeted 26.6%
from 1,124 to 825 available homes.
The number of new listings on the market for the month of
May dropped 8.3% compared to last year (483 vs. 527). This shows that the
supply is still tightening but not at the torrid rate that it did from last
autumn to last winter.
Demand Side
Interestingly, the demand side is actually increasing even as the inventory shrinks. The number of contracts accepted year-to-date is up only .2% (1,828 vs. 1,824). But last month the number of contracts was up 3.5% compared to May of 2011 (443 vs. 428). This indicates that the demand is increasing as the year has progressed despite the lack of inventory.
Interestingly, the demand side is actually increasing even as the inventory shrinks. The number of contracts accepted year-to-date is up only .2% (1,828 vs. 1,824). But last month the number of contracts was up 3.5% compared to May of 2011 (443 vs. 428). This indicates that the demand is increasing as the year has progressed despite the lack of inventory.
Stand Out Performance
Out of the entire market for houses in DC, the price bracket between $800,000-$900,000 has been truly exceptional. The number of available homes in that range plummeted 51% year over year (25 vs. 51); and the number of contracts for those homes has increased 31.8% year over year (116 vs. 88).
Out of the entire market for houses in DC, the price bracket between $800,000-$900,000 has been truly exceptional. The number of available homes in that range plummeted 51% year over year (25 vs. 51); and the number of contracts for those homes has increased 31.8% year over year (116 vs. 88).
The Bottom Line
If you are a buyer in today’s market you need to bring your best offer right from the beginning; there is no room for second chances on a house you love. As a seller, if your home is on the market for more than two weeks and has not generated an offer either it’s not being marketed correctly or the price needs to drop.
If you are a buyer in today’s market you need to bring your best offer right from the beginning; there is no room for second chances on a house you love. As a seller, if your home is on the market for more than two weeks and has not generated an offer either it’s not being marketed correctly or the price needs to drop.
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