The spring housing market is still a month away, but UrbanTurf dug into a variety of current data metrics that give a sense of what buyers and sellers in DC might be dealing with when the market gets going.
The inventory of homes for sale has been dropping in the District since last fall. In October, inventory stood at 2.18 months, but by last month, the supply had dropped to just about a five-week supply. The standard benchmark for a balanced housing market is six months of inventory. As long as the inventory of active listings in the city remains low, the market will be competitive for buyers.
The reason for the lack of inventory is illustrated in the second chart above. The ratio of contracts to listings on the market in DC has been rising for the last three months, and in January it rose above 1.0. This means that active listings are receiving at least one contract, and in many cases more.
The frequent refrain for much of last year was that from one month to the next, home prices in DC were hitting record levels. However towards the end of the year, prices began to level off and in January, albeit a winter month when prices typically dip, the drop off was more pronounced than in years past. Prices will likely rise in February and then again in March, but chances are the market won't be setting records like last year.
Thumbnail photo of home in Georgetown for sale. Courtesy of HomeVisit.
This article originally published at http://dc.urbanturf.com/articles/blog/the-three-charts-that-signal-the-spring-dc-housing-market-could-be-competit/13582
Most Popular... This Week • Last 30 Days • Ever
The H Street Corridor once epitomized DC's development boom, but construction activit... read »
UrbanTurf is taking a look at what we think will be the three metrics that will deter... read »
Built in 1840, the home has been home to members of Congress and presidential cabinet... read »
A look at the close-in cities in Maryland and Virginia with the lowest supply of home... read »
The gorgeous boutique condominium is ideally located on the border of Columbia Height... read »
UrbanTurf is re-running its primer on property taxes which outlines a few things that... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The Shaw pipeline is starting the year off hot.... read »
The upzoning would mandate additional Inclusionary Zoning units for developments alon... read »
Is U Street regaining steam as the development center of gravity in the neighborhood?... 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