October DC Metro Market Sees Highest Annual Price Gain since Dec 2005
Demand has picked back up in the Washington DC metro housing market in October following a typical September slow down. Sales, new pending contracts, and median price gains are all above their 10-year average change from last month, an indication that buyers are still active in the market. All market indicators are above last years levels, and many are at multi-year October highs. The mild temperatures experienced in October could be playing a role as evidenced by a 7-year high for new pending contracts. Buyers appear to be drawn towards townhomes and condo units, as the proportion of new contracts on single-family homes is the lowest it has been in 2 years. This could be due to the lower price points of these properties as well as location preferences of the active buyer market. Median prices are up in the region, posting the highest year-over-year price gain in nearly 7 years.
The inventory of homes for sale continues to fall, which is playing a role in the price gains. Active listings are nearly half of their level 2 years ago, and new listings for October are at their lowest point in over a decade. Townhomes continue to gain traction in the market, posting the highest median price growth and new contract growth of all property segments. Despite the rising prices, it is unlikely that the region will see an influx of active listings as we close out the year. Many would-be sellers are still facing equity losses, and economic uncertainty remains a concern.