The DC area’s declining inventory.
The DC area finished 2012 with the lowest level of for-sale housing inventory in almost a decade, and the lowest number of new listings on record.
RealEstate Business Intelligence (RBI) reported this morning that there were 6,466 active listings in the region at the end of last year, a drop of over 4,200 listings from the end of 2011. As for new listings, 2,465 came on the market in December, the lowest number for any month with data dating back to 1997.
In general, a drop in inventory usually results in prices heading northward, but at least in the short term, RBI hypothesizes that is not what is happening:
Unseasonable declines in sales and median price from November could be an early sign of weakening demand. While intuitively low supply would put upward pressure on prices, it could be that many buyers are deciding to delay their home purchase until more options become available on the market, which is loosening the pressure on pricing as evidenced by the $11,000 drop in the median sale price from November.
Courtesy of RealEstate Business Intelligence
Still, there is evidence that the drop in inventory over the last 12 months has driven prices upward. In DC proper, the median sales price has risen almost 10 percent (from $414,000 to $455,000), and across the Metro area, prices rose 10.5 percent. During that period, active inventory fell by over 40 percent.
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/housing_inventory_in_dc_area_hits_lowest_level_in_almost_a_decade/6501
Most Popular... This Week • Last 30 Days • Ever
DC's homebuyer assistance programs can be a bit complex. This edition of First-Timer ... read »
The most detailed rendering yet has been unveiled for the 310-unit redevelopment of t... read »
A look around DC to find the most equity-rich neighborhoods.... read »
Developments both big and small are continuing to churn throughout the Anacostia area... read »
The National Capital Planning Commission will consider approval of the final master p... read »
Our guide for amateur landlords who don't really know what they're doing.... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
When you buy a home in the District, you will have to pay property taxes along with y... read »
The eight-bedroom, 35,000 square-foot home known as The Cliffs hit the market Wednesd... read »
Brookfield Properties is moving forward with development plans for additional sites i... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
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!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro