August Remains Hot — Strong Demand, Rising Prices
The DC metro market didn’t cool off as the last days of summer approached. Demand remained strong and the number of sales and pending contracts increased compared to last year at this time. It was condo sales (again!) that drove the majority of the increases in both sales and new contracts.
Inventory did continue to decline — but the good news is that the pace slowed to a single digit year-over-year decrease. We can thank the increase in new listings that helped to mitigate the decline of inventories. This is the highest August-level of new listings in three years, the fifth consecutive month of increases.
Median Sales Price Hits Highest Mark Since August 2007
The median sales price bumped up again, all due to combination of high demand and low supply across the region. It’s at the highest August-level median sales price in eight years!! At $415,000, the median sale price is 7.8 percent higher than this time last year, an increase of $30,000.
Jurisdictions See Price Gains – PG County Tops the List
Jurisdictions across the DC regions saw varying increases in median sale price from last year at this time, but Prince George’s County had the highest growth rate, increasing 19.4 percent. Arlington and Alexandria were the only jurisdictions with a decline in median price, decreasing 2.3 and 1.6 percent, respectively. The year-to-date median sale price for the region as a whole is now $402,500, a 10.3 percent gain from the $365,000 level for the same period last year.
Listings Continue to Sell Quickly – Lowest Level Since August 2005
The median days-on-market continues to be historically low, and is now at its lowest August-level since 2005. Rising prices and strong demand may encourage new sellers to enter the market, increasing new listings and helping to meet pent up demand.
Fifth Consecutive Month of Double-Digit Sales Growth
There were 4,621 sales in August , an 13.8 percent more than a year ago — the highest August-level since 2006! The number of sales decreased 6.7 percent from July, but the number of condo sales actually increased from last month and were the only property segment do so. Condos also had the strongest sales growth, year-over-year, of the property segments, increasing 28.8 percent 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 percent from last August, which is the seventh consecutive month of double-digit growth for this indicator. Single-family detached home sales increased by 7.4 percent from this time last year.