Today, UrbanTurf is taking its bi-annual look at the neighborhoods around DC where homebuyers are likely to face the most competition in 2022.
UrbanTurf used a variety of metrics to determine the competition level in neighborhoods around the city. First, we used the year-to-date ratios of average sales price to original list price for advertised subdivisions in DC. The baseline ratio is 100 percent, so any average north of 100 is an indication that homes are selling for above list price.
The second metric we examined was housing inventory. And the last metric we analyzed was contract ratio, which compares the total number of homes under contract in a given period to the overall number of active listings. A higher ratio signifies an increase in contracts compared to supply. For example, a ratio of 2.0 means there are two listings under contract for every listing that is active.
Interestingly, the most competitive neighborhoods for buyers this year are also some of the city's most expensive. This is in line with recent comments from Bright MLS chief economist Lisa Sturtevant who told UrbanTurf that the higher-end markets in DC will likely not be very affected by the recent rise in interest rates.
Colonial Village, a neighborhood on the top of the DC diamond, and the upper NW neighborhood of American University Park lead the way for competition thanks to average sales price to original list price ratios of 112% and some of the highest contract ratios in the city in the first quarter.
Chevy Chase DC remains a competitive market thanks to a contract ratio of 1.33 and about a one-month supply of homes on the market. And Kent, despite a median home price of $2 million, also made the list due to a low supply of homes for sale that is pushing competition.
For more on the current climate of the DC-area housing market, check out UrbanTurf's recent coverage below:
- $376,000 to $1.4 Million: How Much a Home Really Costs in DC
- Where Are Home Sellers Dropping Their Prices in DC?
This article originally published at https://dc.urbanturf.com/articles/blog/dcs-most-competitive-neighborhoods-for-homebuyer-are-also-some-of-the-prici/19713.
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