- DC's housing market is still strong going into the winter months.
- The only downward tick in the RealEstate Business Intelligence report recovered in November.
- The market continues to show year-over-year gains in most metrics.
The DC metro market keeps on sprinting forward in a pace that it has maintained for well over a year, even overcoming a seasonal blip seen in the RealEstate Business Intelligence (RBI) month numbers for October.
In November, RBI noted that 3,347 sales closed for a 10.2 percent year-over-year gain. That’s a more than likely seasonal drop from the 3,871 sales that closed in October. But, that’s still good for the 12th consecutive month of year-over-year gains.
The strongest individual segment was in townhomes, which jumped 26.5 percent, with 911 units changing hands.
This year’s total sales are already ever so close to bypassing the 2014 number. The market needs to churn out only 79 more sales to match that number. In total through November, there have been 46,101 total sales, a gain of 9.5 percent compared to the same period last year.
The strong market that’s been in place shows no sign of fatigue just yet. New contracts are at their highest level in a decade. That’s a sure sign of market vigor.
Pending sales entered in November were off from October, at 4,186, which is a 7.4 percent increase from November 2014. There were 4,794 pending sales entered in October 2015.
That is better than a full year of year-over-year increases.
Active listings continue to gain ground, with November marking the 26th consecutive month of year-over-year increases in that figure. Active listings totaled 10,682, a jump of 6.6 percent over last year. A total of 3,981 new listings were entered in November, a 7.7 percent increase over last year, and the 12th consecutive month with gains.
And even though homes are coming on line, they don’t stay there: Days on market sank two more days on average to 25 days.
The November median sales price remained the same year-over-year, at $405,000. But, the median price ticked up 1.5 percent over October’s numbers, which equated to a $6,000 gain.
The only downward number in the October report was that median sales price number. That price point slid an insignificant 0.3 percent then, or about a thousand bucks, to $399,000.
At the time, RealEstate Business Intelligence’s chief evangelist John Heithaus said that little blip meant nothing.
“That shows seasonality kicking in,” he said about the October numbers. “It’s statistically irrelevant.”
The year-to-date sales price continues to hold strong. The year-to-date median sales price of $412,000 is up 1.7 percent from last year. Still, many homes in the market go for more than 100 percent of the list price, with multiple offers often lined up.
Heithaus underscored how price appreciation is evident in the market. “Comparing prices now to prices from last year is showing real price appreciation,” he said in November. “People who bought in in 2012 or 2013 are seeing it, and that’s a good recipe for the conditions we have now, combining real price appreciation with low mortgage rates.
“These folks are talking with their friends, who are happy with their homes and the increased values, and more people want in.”
Although, if the Fed takes the expected course in raising interest rates at it’s upcoming meeting, the recipe may no longer produce the same end result.
The DC Metro Area Housing Market Update provides insights into the state of the housing market by measuring key metrics. 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.