DC Area Home Prices Hit May Record as Sales Slow

by Lark Turner

DC Area Home Prices Hit May Record as Sales Slow: Figure 1
A recently-sold home in Georgetown that sold for $280,000 over the asking price.

DC area home sales fell in May, continuing an April trend, but prices reached a record high for the month, according to a report from RealEstate Business Intelligence (RBI) released Tuesday morning. In DC proper, the median sales price rose 8.1 percent, from $490,000 to $529,875, while the median price for the region hit $430,000.

There’s news on inventory, too; as we recently reported, the number of active listings for sale has been rising in the DC area. The RBI report for May confirms that the inventory of active listings is at its highest level in two years, posting a 30 percent year-over-year increase.

Prior to Tuesday’s report, RBI’s Corey Hart told UrbanTurf the inventory trend hasn’t changed the state of the market, with the ball still firmly in sellers’ courts. But if homes continue to be listed for sale, the DC area may be moving toward a more balanced market.

“It’s a sign that could be positive for buyers, but the fact is there’s still far more demand than there is supply in the DC area,” Hart told UrbanTurf as reports about more inventory began circulating. “The attached property market, in particular, remains the tightest.”

More from the report:

Closed sales and new pending contracts decreased from last May by 10.6 percent and 4.5 percent, respectively. But both were above their May-levels in 2011 and 2012 with new pending contracts above their May-levels for all years from 2006 to 2012. As in recent months, bank-mediated sales decreased at a faster rate than non-bank-mediated sales and contributed to the overall decline in closed sales. The median sales price continues to rise, likely due to both the decline in bank-mediated sales and tight inventory.

In two hot-market indicators, the median days on market dropped this month, while sales prices rose across monthly, yearly and five-year categories. Prices have now risen year-over-year for the 28th month in a row.

Some other takeaways:

  • Condo prices showed the largest year-over-year growth in May, heading up 5.1 percent or $15,000. Townhome prices rose 5 percent or $20,000 on average and prices for single-family homes rose about $12,000.
  • Homes in Falls Church remain the most expensive, with a median sales price of $773,250. Arlington is second with a median price of $570,750 and then DC at $529,875.
  • Active listings may have shot up 30 percent since May 2013, but don’t get too excited, the report urges: the number of active listings is still about 60 percent lower than their peak in September 2007.

This article originally published at https://dc.urbanturf.com/articles/blog/dc_home_sales_slow_in_may_but_median_price_reaches_record_high/8593

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