DC Metro Market Update May 2016
May was a month of growth for real estate sales in the Washington DC Metro region, good news for those living life along the Orange Line. Sales were at their highest since 2006, while new listings decreased by 10.1% and inventory overall went down by 8.5%. This combination of factors make for a strong market that has buyers in high demand. Listed below is a summary of the latest market data released for the region.
Sales for the region increased by 12.3% compared to a year ago, up to more than $2.8 billion. This is a 19.3% increase from the month prior. Closed sales continued their 18-month consecutive increase, with 5,432 closed sales for May, 12.3% more than last year. There were also 6,385 new contracts begun in May, 3.7% more than in May 2015. Median prices in the region saw a small decrease from $435,000 last year down to $430,000, a 1.1% decrease. This small difference reflects an overall steady pace of pricing for the region. Falls Church, VA reported the highest median prices for the month, at $625,000, while Prince George County remains the most affordable with a median price of $250,000. Arlington County median prices put it just below Falls Church, coming in fourth highest for May with a median price of $535,000. When reviewing the differences and comparing year over year pricing, Falls Church is seeing a large rise in home values as more affluent buyers are moving in. The median price in Arlington County keeps us in the mid range of affordability.
Average to original listing price ratios for the Washington DC Metro area increased slightly when comparing year over year data, at 98.3%, which is higher than April’s ratio of 98%. This ratio shows how close our average sale prices are to original list prices. For Arlington County specifically, there was a slight drop in the ratio from 98.4% in May 2015, down to 97.8% this year. Being so close to the listing prices indicates that homes are being priced where they should be, good news for both buyers and sellers. When list prices are in line with the market, there are not wide swings in average sale prices, lending more stability to the market overall.
Days on the Market (DOM) show another indication of a stronger market for the region. Comparing month to month data, homes moved, on average, 1 day slower in May than in April. Condos saw the slowest turnarounds for the month, with a median DOM of 17 days, while townhomes had a DOM of 10 days, and single-family homes with a 13 days on market median. Within Arlington County specifically, the median DOM is lower than the average for the region, reporting at just 15 days for May.
When you are ready to buy or sell your home, myself and the Orange Line Living team are here to provide you with our unique and specialized services so you can turn your dreams into reality. To learn more about how we can help you, contact us directly at 571-969-7653 or at [email protected]