January 2013 DC RE Market Summary DC Metro
Double-Digit Annual Price Gains in DC Metro
Sales fell as is the typical seasonal pattern, but new contracts shot up in DC Metro condo market.
Inventory shortages continued in January 2013 in the Washington DC Metro region. Active listings for all property segments remained low, with townhomes showing the lowest percentage of listings. Inventory shortages put upward pressure on Median Sales Price, which saw double-digit growth for the 4th consecutive month. Townhomes led with a 13.3% increase (a $40,000 value increase).
Demand remains strong in the market as evidenced by a spike in new contract activity during the month of January. The condo market led in new pending contracts, with an increase of 10.3%.
New listings for January 2013 increased from December, as is typical for the very start of the spring DC real estate market, but the total number of new listings is the lowest for any January in over 15 years.
DC Metro Closed Sales
Single-family homes lead growth in closed sales for the first time in 10 months and increased from January 2012 despite low inventory. There were 2,497 sales in January in the DC Metro Area, up 6.6% from January 2012. Sales fell sharply from December 2012, down 24.9%, in line with seasonal patterns. Single-family detached homes led all property types in year-over-year growth, up 8.8% from January 2012. Sales of condos and townhomes rose 5.4% and 3.9% respectively from January 2012.
DC Metro Prices
Double-digit price growth across most of the region, with low inventory remaining a key factor. At $343,200, the median home price in the DC Metro rose 10.7% from January 2012, the 4th consecutive double-digit increase. Median Sales Price dropped 4.4% from December 2012, typical for the time of year. Townhomes led all property segments in median price growth, up 13.3% from January 2012. The inventory of townhomes remains the lowest of all segments. Condos rose 13.0% increase from January 2012 and prices for single family homes picked up 3.8% from January 2012. Median sales price growth was strong through most of the region, with double-digit growth in all but 2 jurisdictions. Arlington County was the only jurisdiction in the region with a decline in median sales price, but analysts iindicate this is more reflective of the type of properties available than softening demand. Condos made up 55.1% of all sales in the county in January 2013 compared to 48.3% in January 2012, and condos generally tend to list at lower price points than single family homes or townhomes.
DC Metro New Contracts
There was a spike in new contract activity during January of 2013, with the biggest gains showing in the condo market with 3,916 new contracts signed in January in the DC Metro Area, up 3.0% from January 2012. Compared to December 2012, new contract activity rose a solid 26.4%, well above the 10-year average of 16.9%. The spike in new contracts provides further evidence that demand remains strong in the market. New contracts on condos rose 10.3% from January 2012, the highest gain of all property types. Condos accounted for 27.0% of all new contracts in the Metro Area in January, which is the highest proportion in over 3 years. A combination of easier financing guidelines, lower price-points, and the demographic composition of the buyer market drives the condo market in the region. New contracts for single-family homes rose slightly, up 1.9% from January 2012. New contracts on townhomes fell 2.2%.
DC Metro Inventory
Active listings dropped by more than 4,000 from January 2012 and the region is experiencing the lowest proportion of townhome listings on record. Townhomes account for only 16.2% of all listings in the metro area, the lowest proportion on record for the region since 1997 records began. There were 6,049 active listings in the DC Metro Area at the end of January. The inventory shortage continues to impact all property segments, with active listings down over 40% across the board. There were 4,004 new listings entered in January, down 4.2% from 2012, the lowest January on record. There was an influx of over 1,500 new listings from December 2012, but this is in line with seasonal patterns. The inventory shortage continues to drive down the median days on market relative to 2012, which at 32 days is 25 days lower than January 2012. The average sale-to-list-price ratio is climbing, up to 96.0% from 93.0% a year ago.
January 2013 DC RE Market Summary for Washington DC
Year Over Year Total Sold Volume was up 13.16% from 2011, Closed Sales up 12.21%, Median Sold Price increased by 12.27% to $421,000. and Average Sold Price by .85%. DOM decreased by 15.58% in January, and Average Sold to Orig List Price Ratio bumped up 2.58% to 96.39%.
As inventory dwindled to record lows, Month Over Month Total Sold Volume, Closed Sales, Median Sold Price, Average Sold Price and Average List to Sold Price all fell in January 2013, with Days On Market (DOM) increasing 12.07%.
Statistical data courtesy of RBI (Real Estate Business Intelligence)
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