August 2013 DC Real Estate Market Report
Listings increase by double digits as price increases and demand continue
MARKET SNAPSHOT FOR DC METRO
During the traditionally slow month of August, deemand for DC Metro Area real estate remained strong. Sales and pending contracts increased and inventory decline slowed to a single digit year-over year decrease thanks to double-digit increases in new listings.
Overall high demand and low supply contributed to median sale price gains creating in the highest August-level median sales price in eight years. Median Days-On-Market (DOM) is still at a historic low, and is now at its lowest August-level since 2005.
Indicated by strong demand for small (less than 800 SF) units, with sales up 35.6% from August of 2012 and more than double the 13.8% increase for all unit, we can surmise that investors and first time buyers, as well as those requiring a DC pied a terre, were most active in the August market. The units showed a median sales price increase of 21.7%, which is almost three times the 7.8% increase for all units.
August saw double-digit sales growth for the fifth consecutive month in DC Metro. The 4,621 sales in August is a 13.8% increase from August of 2012 and the highest August-level since 2006.
August sales decreased 6.7% from July, a sharper decrease than the 10-year July-August decrease average of 2.5%, but condo sales (those small units again!) picked up from July.
Condos also had the strongest sales growth, year-over-year, showing an increase of 28.8% from August 2012 and accounting for over half of the total growth in sales. This is the highest year-over-year growth rate for condo sales for the past three years.
Townhome sales increased 11.6% from last August, the seventh consecutive month of double-digit growth for this property type.
Single-family/detached home sales increased by 7.4% from August 2012.
More milestones! August 2013 saw the highest August-level median price since 2007. At $415,000, the median sale price in DC Metro is 7.8% higher than in August 2012, an increase of $30,000. It's the highest August-level since 2007.
Detached homes led all property segments in median sale price rate of growth, increasing 11.3% from August 2012 for a gain of $54,000. The median sales price for townhomes in the region increased 8.6%, or $31,000, from this time last year.
Condo property median sale prices rose 7.7%, a gain of $21,250 from last year.
Arlington and Alexandria were the only jurisdictions with a decline in median price, decreasing 2.3 and 1.6% respectively.
Year-to-date median sale price for the region as a whole is now $402,500, a 10.3% gain from the $365,000 level for the same period last year.
Condos drove an increase in contracts during August of 2013. A respectable 4,536 new contracts were signed in August, 54 more than this time last year. This is the highest August total since 2010.
New contracts fell 9.5% from July, a sharper decline than the ten-year average of 6.8%. The decline was evenly distributed among the property segments.
Condos were the only property segment that had more new contracts than August 2012, increasing 6.6%, or 75 contracts.
There were 8,301 active listings in the DC Metro Area at the end of August, a decrease of 9.7%, or 890 listings, from August 2012. Active listings continue to decline across all property segments relative to last year, and are at their lowest August-level in eight years for single-family detached homes and nine years for condo properties. There were 1,420 townhome listings, which is the lowest August-level on record, with data available back to 1997. Despite the decline in total active listings, the pace of the decline has slowed. The year-over-year change is the mildest decline in two years and is the first single-digit drop during that time. New listings have increased by 11.4% from this time last year, for a total of 5,311 new listings in August. This is the fifth consecutive month of double-digit growth for this property type and the highest August-level of new listings in three years.
Condos continue to lead all property segments in new listing growth, increasing 17.4% from last August. New listings of single-family homes increased 10.7%, and townhome listings increased 7.1% from this time last year. At 14 days, the median days-on-market for the DC Metro Area is the lowest August-level since the peak of the housing boom in 2005.