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DC area prices reach highest monthly level on record in May

Casey O'Neal

Casey believes that educating a client and building trust is the best way to overcome fears and apprehension...

Casey believes that educating a client and building trust is the best way to overcome fears and apprehension...

Oct 24 8 minutes read

Washington D.C. Metro home prices set new all-time high of $460,000.  May closed sales and new pending sales at decade highs; inventories continue to shrink by double-digits.

OVERVIEW

  • The Washington D.C. Metro median sales price of $460,000 was up 7.0% or $30,000 compared to last year.  This represents the all-time high for any month on record, topping the previous high of $446,000 reached in June 2016.
  • Sales volume across the DC Metro area was over $3.1 billion, up 9.7% from last May.
  • Closed sales of 5,620 were up 3.5% compared to last year and set a May high for the decade.
  • New contract activity of 6,668 was 4.4% above last year’s May record of 6,385.
  • New listings of 8,085 were up 8.7% compared to last year and up 5.5% compared to last month.
  • Active listings of 9,865 are down 10.9% compared to last year, but are up 3.3% compared to last month. This is the thirteenth consecutive month of declines in year-over-year inventory levels, and inventories are at the lowest May level since 2013.
  • The average percent of original list price received at sale in May was 98.8%, up from last year’s 98.3% and from last month’s 98.7%.  This was the highest May level of the decade.
  • The median days-on-market for May 2017 was 10 days, 3 days lower than last year.

 

  • May’s regional median sales price rose to $460,000, the highest monthly level on record with data going back to 1997.  This was a 7% or $30,000 increase over last year and a 5.4% or $23,500 increase over last month.
  • Single-family detached homes increased 7.5% to $574,950, townhomes rose 4.9% to $435,250, and condos rose 0.2% to $311,000.    
  • May prices are well above the 5-year average of $435,960, and the 10-year average of $400,191.
  • The overall regional price of $460,000 is 34.6% above the May 2010 low of $341,750, and 5.7% above the previous May 2015 high of $435,000.
  • Falls Church City is still the most expensive location in the region, with a median sales price of $829,010, up 32.6% from last year, which was the largest increase in the region.  Prince George’s County remains the most affordable area in the region, with a May median sales price of $275,000, up 10% from last year.  Only Alexandria City (-11.8% to $474,900) saw a decrease in median sales price compared to last year; all other jurisdictions saw increases.
  • For the year to date, the overall regional median sales price is up 5.4% to $425,000.

 

  • Closed sales of 5,620 were up 3.5% from last year and were up 22.2% from last month, and the highest May tally since 2005.
  • All property types saw increases in sales this month, with single-family detached and townhome sales both up 3.6% to 2,758 and 1,406, respectively, and condos up 2.9% to 1,455.
  • Sales remain above both the 5-year average of 5,105 and the 10-year average of 4,612.
  • May’s closed sales were up 56.3% above the market low of 3,596 seen in May 2008.
  • Sales activity across the region was mostly up, with the largest percentage increase in Fairfax City (+44.8% or 13 sales) and the largest percentage decrease in Montgomery County ( -7.5% or 101 sales).  For the year-to-date though, all jurisdictions continue to show gains in sales, with the largest in Falls Church City (+46.7 or +28 sales) and the smallest in Montgomery County (+4.4% or +208 sales).

 

  • New pending sales of 6,668 were up 4.4% compared to last year and up 9.4% from last month, marking the highest May level since 2004.
  • Townhome new pending sales showed the strongest gains, up 5.7% to 1,688.  Condos rose 5.3% to 1,676 and single-family detached were up 3.4% to 3,304.
  • Pending sales are above the 5-year average of 6,169 and the 10-year average of 5,437.
  • May’s new pending sales were 73.2% more than the May 2010 low of 3,849.
  • Pending sales activity across the region was mixed, with the largest percentage increase in Fairfax City, which was up from 35 pending sales to 53 (+51.4%).  The smallest increase was in Arlington County (+2.1 or 7 pending sales).  The only decrease in new pending sales was in Montgomery County, where they were down 4.8% to 1,537.

 

  • There were 8,085 new listings in May, up 8.7% from last year and up 5.5% compared to last month. 
  • New single-family detached listings were up 9.9% to 4,055, new condo listings were up 7.7% to 2,115, and new townhome listings were up 7.6% to 1,914.
  • New listings are above both the 5-year average of 7,812 and the 10-year average of 7,235. 
  • May new listings are 34.8% above the 10-year low of 5,996 seen in May 2010 and are 2.3% below the peak level of 8,275 seen in 2015.
  • Across the D.C. Metro, all jurisdictions saw an increase in new listings compared to last year, with the largest percentage increase of 33.3% in Falls Church City, where they increased from 27 to 36.  The smallest percentage increase was in Montgomery County, where new listings increased 3.8% to 1,931.

 

  • May active inventories of 9,865 decreased 10.9% compared to last year, but were up 3.3% compared to last month. 
  • All property types showed decreases in inventory levels over last year, with townhome inventories down 13.8% to 1,714, condo inventories down 13.7% to 2,553, and single-family detached inventories down 8.6% to 5,589.
  • Inventories are below both the 5-year average of 10,296, and the 10-year average of 13,771.
  • May inventory levels exceed the 2013 low of 7,999 by 23.3%, but are down 61.9% from the peak of 25,872 seen in May 2008.
  • Across the region, inventory levels dropped everywhere except Washington, D.C, where they rose 7.4% to 1,376.  The largest decline was in Fairfax City, where they dropped 18.1% or 13 listings.

 

  • The regional average sales price to original listing price ratio (SP to OLP ratio) for May was 98.8%, up from last year’s 98.3%, and also up from last month’s 98.7%. 
  • Townhomes have the highest May SP to OLP ratio of 99.8%.  Single-family detached homes have a SP to OLP ratio of 98.6% and condos have a ratio of 98.4%.
  • May’s SP to OLP ratio exceeds the 5-year average of 98.5% and the 10-year average of 96.4%.
  • Over the last decade, the region’s May average sales price to original listing price ratio ranged from a low of 91.9% in 2009 to this May’s high of 98.8%.  The prior highest May level in the last ten years was the 98.7% seen in 2014.
  • The largest gap between original listing price and sales price was in Fairfax City, where the average ratio was 98.4%, up from last year’s 97.8%.
  • Washington D.C. had the highest regional SP to OLP ratio, at 99.6% of original listing price, down from last year’s 99.8%.

 

  • The median days-on-market (DOM) in May was 10 days, down from 13 days last year and the same as last month.
  • Condos have a median DOM of 13, single-family detached homes have a median DOM of 11, and townhomes have a median DOM of 7.
  • May’s median DOM was one day below the 5-year average of 11 days, and was 11 days below the 10-year average of 21 days.
  • This month’s median DOM of 10 is the second-lowest level in a decade (the lowest was 9 days in 2013).  The highest DOM of the last 10 years was 49 days in 2008.
  • The highest median DOM in the region in May was in Prince George’s County where it was 14 days, down from 19 days last year. 
  • Alexandria City, Arlington County, Fairfax City, Falls Church City and Washington D.C. all have a median DOM of 8 days, and in each of those entities it is down from last May’s median DOM.

by Corey Hart for RBIntel

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