July 2012 Analysis: DC Metro Area

RealEstate Business Intelligence (RBI) recently posted their article, "Continued Tightening in DC Metro Inventory, Highest July Prices in Five Years."   Here is the analysis:

(The "DC Metro" area comprises Washington D.C., Montgomery County and Prince George's County, MD, and Alexandria City, Arlington County, Fairfax City and County, and Falls Church, VA)

Headline from Report:  Active Listings are at their lowest level in seven years.  Year-over-year, there was a decrease of 35.4% in active listings.  With inventory sparse, buyers have been forced to compete more aggressively to secure properties.  The median days-on-market is 23 days (get ready to present an offer quick buyers!) and the sale-to-list-price ratio is the highest it's been since 2006, at 96.3% (low-balling the seller is history for the time being).


 




 

What Seems "Scary?"
Sale of units are down from last month.

Why It's Not Scary:
Why is this news acceptable?  Though sale numbers have dropped from June to July, year-over-year sales have increased for the month of July for four consecutive years.  The month of July 2012 had a 5.1% increase since July 2011 of units sold.  Also, July usually exhibits slower growth compared to other months in the year.  The 10 year average of June to July change in number-of-units-sold is -9.5%  This year exhibited the familiar, with the expected drop of 10.7% decrease in number-of-units sold from June 2012 to July 2012.

 

What Seems "Scary?"

The median sale price dropped $15,000 from June.

Why It's Not Scary:
 Median sale prices are the highest July sale prices in five years, and rose 2.8% from 2011.

What Seems "Scary?"

Growth in new contracts has slowed.

Why It's Not Scary:

"The townhouse and condo markets posted year-over-year growth in new contracts of 4.0 percent and 6.0 percent respectively.  This is the 15th consecutive year-over-year gain for the condo market, which continues to enjoy strong demand based on lower price points, escalating rents in the region, and easier financing.  New contracts on detached properties fell by 4.4 percent from this time last year."  (This quote is pulled directly from the RBI Report).

What Should Sellers Do?  Take note that year-over-year sales are up, and the low inventory is a great way to attract more buyers since there is less competition for you.  Call me about listing your property (202) 441-1757.

What Should Buyers Do?  Get ready for a competitive and aggressive search process.  Call me if you are looking to find a property (202) 441-1757.

For any questions regarding the information presented above, please email Kevin@EversCo.com, or call (202) 441-1757.  

(Information Soured from RBI Intel)