As a part of Wilson Realty Group’s weekly series on local market conditions and due to the government shutdown, this week we focus on Washington DC. The District is at the center of life for many who live in the greater Metro DC region and tends to be a leading indicator of market conditions for the surrounding area. It is vitally important to understand what is going on in the District as it tends to have a ripple effect across the region.
1. Market Activity – As we saw last week for Northern Virginia, Washington DC has slowed back to pre-April 2013 conditions. While market activity alone does not define the strength of the local real estate market, it is an important factor as supply and demand vary. Through August, 2013 there were only 1,097 active listings in the District – an 18% decrease from a year ago. Across all segments for market activity, we see decreasing numbers continuing through August.
2. Median Sold Price – The Median Sold Price across all segments for August, 2013 was $461,000 up 5% from last year but off of the 2013 high of $529,000 in June, 2013. All segments are up from a year ago, however we have seen two straight months of decreases in the Median Sold Price. Given that the spring of 2013 saw the release of tremendous pent up demand in conjunction with the lowest interest rates seen in a generation, and that the typical buying season slows at the end of summer it is not surprising to see these numbers. We will keep an eye on the September numbers to see how much will be given back this year and if we experience more of a reduction due to higher interest rates.
3. Average Days on Market – The ADOM for Washington DC is 36 days across all segments. These numbers are historically low and we should expect some increase in the ADOM over the coming months as rates rise and inventory changes.
4. Average Sold to Original List Price Ratio – As expected, the ASOLP Ratio came down slightly in August, but only to 98.9%. This still reflects a solid market and doesn’t raise any flags for us at the moment. The market is being driven by supply and demand and until or unless one of those changes, we can expect ASOLP Ratios to continue to be in the high 90’s.
At Wilson Realty, these numbers are not far from what we expected to see coming out of August. The historically slow real estate season is now upon us, rates are increasing and inventory remains low across the District combines to mean that we shouldn’t see a big swing in the market anytime soon as these factors balance each other out in a way. So if you are ready to make your next move, call us today at 202-642-5478 and let’s move!