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The Jonas Effect on the DC Area Housing Market

by UrbanTurf Staff

The Jonas Effect on the DC Area Housing Market: Figure 1
A DC home that sold in January.

The regional housing market was slowed by the massive snowstorm that brought the DC area to a standstill in January, a new report reveals.

The RealEstate Business Intelligence report for January out today showed that the number of new contracts in the area fell by 8 percent, the first decline in 15 months, and the number of new listings dropped 5.3 percent from last year, the first drop in 14 months. Both declines are being attributed to the late January snowstorm.

Prices were also lower across the area in January for the first time in recent memory, falling 2.5 percent versus January 2014. On a more granular level, home prices dropped in places like Montgomery County and Alexandria, but rose in DC proper and Arlington.

The other story last month was inventory. From the report:

“After rising to a peak year-over-year increase of 34.6% in August 2014, inventory growth has steadily declined, and at 8,277 listings, is only 4.1% higher than a year ago. Year-over-year inventory growth will likely turn negative sometime in 2016.”

The chart below illustrates the downward trajectory of inventory in the region since 2008.

The Jonas Effect on the DC Area Housing Market: Figure 2

This article originally published at https://dc.urbanturf.com/articles/blog/the_jonas_effect_on_the_dc_area_housing_market/10858

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