Home Purchase Contracts at 7-Year High in DC as Inventory Remains Low

• September 10, 2012

by Shilpi Paul

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In August, the number of new contracts for home purchases in the DC area reached its highest level since 2005, RealEstate Business Intelligence reported this morning, as low inventory pushed prices to levels not seen since August 2007.

4,482 new contracts were signed last month, a 7.5 percent increase over August 2011, as the condo market led the way with a 15.7 percent year-over-year increase. The report revealed that while median prices in the area didn’t change much between July and August, they rose $29,000 compared to last year. The low number of current listings may be pushing prices higher; the report noted that there were 9,191 active listings on the market last month, a 35.8 percent drop versus last year and the lowest level for the month since 2004.

From RBI:

Many people are likely keeping their homes off the market due to continued economic uncertainty, preferring to wait it out. It is also likely that homeowners in some communities would still face equity losses if they were to sell at the current price points, which could be deterring many from entering the market.

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.

This article originally published at http://dc.urbanturf.com/articles/blog/demand_strong_in_dc_with_new_contracts_at_a_7-year_high/6003