DC Home Prices Hit Highest Level on Record

by UrbanTurf Staff

DC Home Prices Hit Highest Level on Record: Figure 1

Home prices in the District of Columbia rose 13.6 percent between March 2012 and March 2013 to reach a median sales price of $460,000, the highest on record for the city, according to a report released by RealEstate Business Intelligence on Wednesday.

In northern Virginia, the price increases were even more notable; Alexandria and Falls Church saw prices rise 24 percent and 37 percent, respectively. March also marked the fifth month in a row that the median price in the DC area increased (year-over-year) by double digits.

Even as prices rise in the region, homes are selling at their fastest rate in eight years, according to the report.

The median number of days that a home for sale is spending on the market is a mere 15 days currently. To put that number in perspective, homes are now selling about three times faster than just 12 months ago.

Despite evidence that it is a very attractive time to be a seller, a low inventory of homes on the market continues to plague the region. The RBI report reveals that there were 6,289 active listings in the DC area at the end of March, 4,200 fewer listings compared to last March.

More on inventory from the report:

The subtle signs of improvement in new listings that occurred last month have faded. There were 5,817 new listings in March, 15.8 percent lower than last March. New listings rose 28.1 percent from last month, but this is well below the 10-year average February-to-March change for the region of +41.1 percent.

Here are a few other interesting statistics from the report:

  • The average sales-to-original-list-price ratio reached 97.6 percent in March, the highest ratio in nearly 7 years.
  • Closed home sales rose 6.7 percent, the 12th consecutive month with a year-over-year gain.

The area that RBI analyzes includes DC, Montgomery County, Prince George’s County, Alexandria City, Arlington County, Fairfax County, Fairfax City, and Falls Church City.

Similar Posts:

This article originally published at https://dc.urbanturf.com/articles/blog/dc_home_prices_hit_highest_level_on_record/6913


  1. Rolly said at 4:04 pm on Wednesday April 10, 2013:
    The bubble keeps growing and growing...
  1. StringsAttached said at 4:50 pm on Wednesday April 10, 2013:
    @Rolly I wouldn't really call it a bubble. There are jobs in the area and instead of coming and going, most young professionals are staying and starting families. They need places to live. That fact, coupled with the reality of individuals sticking to very targeted DC neighborhoods, and "low inventory", means the homes that are up for sale will command a higher price. In addition, the DC market never crashed, it just went from ridiculously hot, to normal.
  1. Found said at 4:55 pm on Wednesday April 10, 2013:
    I agree with @StringsAttached. A bubble implies that there is an oversupply of homes on the market; in the DC area there is the exact opposite.
  1. Janson said at 6:35 pm on Wednesday April 10, 2013:
    Median isn't a very helpful measure, since the mix of sales is changing with tighter credit now than at any time since the 80's. All of the house price indexes agree that the DC region (not metro) is far below its earlier peak. The January Case-Shiller index was at 187.42 and in May of 2006 it was at 251.07. The index will have to rise 34% more before it even reaches the old peak despite major population increase and historically low rates. Caveats: index doesn't include condos & is a trailing indicator about about two months. Still.
  1. CH said at 4:28 am on Thursday April 11, 2013:
    Not sure mix of sales argument holds up in DC. While tight credit keeps low income folks on the sidelines (driving down low-price segment sales) it also keeps mid-to-upper income away from high-priced (artificially inflated during boom due to lack of regulations) segments. Looking at volume by type, Attached homes account for higher proportion of homes sold in Mar-2013 than in Nov-2005 (the month during bubble w/ highest median $). Detached account for 15% of Mar sales, compared with 19% of sales in Nov-2005. If anything, that should have driven median down. Low inventory (and low rates) play bigger role than shifting mix. I wouldn't cite Case-Shiller as the go-to measure, especially considering they throw out condos (47% of March sales in DC). We'll see what CS reports about March in a few months, though. FYI, for sake of apples-to-apples, the median price for attached segment (TH+condo) is also at at an all-time high.
  1. Caleb said at 2:52 pm on Thursday April 11, 2013:
    What stands out to me in this data is that there are still suburbs that are more expensive to purchase a home than in the district proper. The region is going through major changes where the once murder capitol of the world is running a budget in the black with safer streets and commercial services to support residents. As more and more people decide to forgo suburban life, McMansions and large commutes, I suspect that neighborhoods once deemed less desirable--Ekington, Trinidad, East Capitol Hill--will continue to support increased housing prices...as we saw happen in Dupont, Logan, Chinatown, etc.
  1. Robert said at 6:19 am on Wednesday April 17, 2013:
    Absolutely agree with Caleb. And I think a lot of mid- to upper-income buyers see the figurative train pulling out of the station in the Hill and other hot neighborhoods, and want to jump on the property ladder there before they are priced out forever.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!

Northern Virginia

Profiles of 14 neighborhoods across Northern Virginia

Looking to Give People A Reason to Stay Past 6pm
Happily Straddling the Line Between City and Suburb
Columbia Pike
Arlington’s Neglected Stepchild is Getting a Makeover
Crystal City
Turning Lemons into Lemonade
Lyon Village
Developing An Air of Exclusivity?
Hitting Its Growth Spurt
An Urban Village Hitting Its Stride
Del Ray
Virginia’s Small Town Near the Big City
Eisenhower Avenue
The Vibrancy Might Take a Few Years
The Quiet Neighborhood By the Beltway
Old Town
Mayberry By The Potomac
132 Commerical-Free Acres
Downtown Falls Church
Staying the Same in the Midst of Change
Tysons Corner
Radical Change Could Be On The Way
Real Estate Primer: Northern Virginia

See more Northern Virginia »


Profiles of 14 neighborhoods in suburban Maryland

Small-Town Living in the State Capital
Bedroom Community Gets Buzzing Cache
Cabin John
In With The New While Maintaining the Old
Chevy Chase
Affluence, Green Lawns and Pricey Homes
Downtown Silver Spring
Experiencing a Resurgence After a Bumpy History
A Suburb on Steroids
Rockville Town Square
Despite the Dynamism, Still Somewhat Generic
Takoma Park
More Than a Little Bit Quirky
A Foodie Magnet on the Verge of Change
Capitol Heights
Kudzu, Front Porches and Crime
Glass Half Full or Half Empty?
Mount Rainier
Artists, Affordable Homes and A Silo Full of Corn
National Harbor
A Development Rises Next to the Potomac
Riverdale Park
A Town Looking For Its Identity

See more Maryland »

Northwest DC

30+ neighborhood profiles for the city's biggest quadrant

16th Street Heights
DC's Sleeper Neighborhood
Where (Almost) Everyone Knows Your Name
AU Park
One of DC’s Last Frontiers Before the Suburbs
DC’s Northern Neighborhood on the Cusp
DC’s 535 House Neighborhood
Cathedral Heights
Do You Know Where That Is?
Chevy Chase DC
Not to Be Confused With the Other Chevy Chase
Cleveland Park
Coming Back After A Rough Year
Columbia Heights
DC’s Most Diverse Neighborhood, But For How Long?
An Island of Serenity East of the Park
Dupont Circle
The Best of DC (For a Price)
Foggy Bottom & West End
Where the Institutional Meets the International
Forest Hills
Ambassadors and Adventurous Architecture
Foxhall Village
350 Homes Just West of Georgetown
Friendship Heights
A Shopping Mecca With a Few Places to Live
History, Hoyas and H&M
Glover Park
One of DC’s Preppier and More Family-Friendly Neighborhoods
A Posh View From Embassy Row
LeDroit Park
A Quiet Enclave in the Middle of the City
Logan Circle
Trendy Now, But Not By Accident
Mount Pleasant
Sought-After Homes Surround Main Street in Transition
Mount Vernon Triangle
From Seedy to Sought-After
The Long, Skinny Neighborhood at the City’s Northwest Edge
Park View
It’s Not Petworth
Penn Quarter/Chinatown
DC’s Go-Go-Go Neighborhood
Getting a Vibrancy of Its Own
The Duke’s Former Stomping Ground
Shepherd Park
DC’s Garden of Diversity
Spring Valley
A Suburb With a DC Zip Code
Not To Be Confused With Takoma Park
Not Quite Like Its Neighbors
U Street Corridor
The Difference a Decade Makes
Woodley Park
Deceptively Residential
Adams Morgan
No Longer DC’s Hippest Neighborhood, But Still Loved by Residents

See more Northwest DC »

Southwest DC

The little quadrant that could

Southwest Waterfront
A Neighborhood Where A Change Is Gonna Come

See more Southwest DC »

Northeast DC

Profiles of 10 neighborhoods in NE

New Development Could Shake Up Pastoral Peace
A Little Bit of Country Just Inside the District’s Borders
Not to Be Confused With Bloomingdale
Fort Totten
Five Years Could Make a Big Difference
H Street
A Place To Party, and To Settle Down
The Northeast Neighborhood That Few Know About
Michigan Park
A Newsletter-On-Your-Doorstep Community
Evolving from a Brand to a Neighborhood
Ripe for Investment Right About Now
The Difference 5 Years Makes
Big Houses, A Dusty Commercial Strip and Potential

See more Northeast DC »

Southeast DC

6 neighborhoods from Capitol Hill to East of the River

Capitol Riverfront
Still Growing
Hill East
Capitol Hill’s Lesser Known Neighbor
Congress Heights
Gradually Rising
Notable for Its Neighborliness
Historic Anacostia
Future Promise Breeds Cautious Optimism
Eastern Market
A More European Way of Living

See more Southeast DC »