• The tide is rising on prices, closed and pending sales, and rental prices while inventories, days on market, and interest rates are ebbing.
  • In DC, supply is at about two months; inventory has been below the six-month level since July 2009.
  • Even high-tier homes are being demanded.

People just can’t list homes fast enough in the nation’s capital.

Even though the entire country is struggling with low supplies of available homes, the Washington, D.C., problem is pronounced and multi-faceted.

Now in D.C., supply is at about two months. Inventory has been below the six-month level since July 2009, and dwindled steadily since then to where we are now.

It’s not that there is a shortage of sellers; quite the contrary. According to data from RealEstate Business Intelligence, for September 2015, there were 1,220 new listings. The five-year September average is 1,089. Year-over-year, the increase in that metric was just below 1 percent, with 1,209 new homes offered first in September 2014.

September’s five-year average of 1,602 listings is way above current conditions, with 1,425 listings active in 2015. But here’s the smoking gun: active listings fell year-over-year from 1,469.

Buyers are grabbing what they can quickly; in the recently concluded third quarter of 2015, the median days on the market is a blistering eight days.

[graphiq id=”8BBe8Q3A3iJ” title=”Mortgage Cost Distributionin Washington D.C.” width=”600″ height=”462″ url=”https://w.graphiq.com/w/8BBe8Q3A3iJ” link=”http://places.findthehome.com/l/294012/Washington-D-C” link_text=”Mortgage Cost Distributionin Washington D.C. | FindTheHome”]

In Q3 of 2010, homes would spend a month on the market.

So the tide is rising on prices, closed and pending sales, and rental prices while inventories, days on market, and interest rates are ebbing.

Even high-tier homes are being demanded. In August, 53 homes in the $1 million to $2.5 million range hit the market, with half of those under contract in less than 10 days. In fact, things are moving so quickly that buyers are getting close to 100 percent of the asking price for homes they sell in the entire D.C. metro market.

Individual neighborhoods vary. If you’re looking at Observatory Circle, you can expect that homes will be on the market for about three weeks. But in AU Park, prepare for a fast current– the average is closer to a week.

Buyers should be prepared to have their financing in good order, and be pre-qualified, or pay in cash to be competitive in DC, where the average home will get more than one offer, and will likely sell above the asking price. And prepare to ride world-class rapids to get there.

Email Kimberley Sirk.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription