With the spring housing market in full swing and that market significantly favoring sellers, UrbanTurf is taking a look at the neighborhoods around DC where homebuyers are likely to face the most competition this year.
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 listing 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.
Unlike previous years, when the most competitive neighborhoods for buyers were scattered throughout the city, so far in 2021, they are all bundled in the upper NW section of the city. In American University Park, perennially one of DC's most competitive areas, there were three listings under contract for every active listing in April.
Shepherd Park may not have a high contract ratio, but with an average sales price to original list price of 106%, there were plenty of bidding wars in the neighborhood in April. Chevy Chase DC remains a competitive housing market with a contract ratio of 1.44 and about a three-week supply of homes on the market. Crestwood and Colonial Village have relatively high contract ratios, so they are also attracting many buyers despite million-dollar median price tags.
For more on the current climate of the DC-area housing market, check out UrbanTurf's recent coverage below:
- 40% of UrbanTurf Readers Would Consider Buying a Home Sight Unseen
- A Scorcher: The DC-Area Housing Market in April, By the Numbers
This article originally published at https://dc.urbanturf.com/articles/blog/the-5-most-competitive-neighborhoods-for-dc-homebuyers-in-2021/18292.
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