January 8, 2016
Washington D.C. Real Estate Market Indicators Stay Strong Into 2016
The Washington D.C. real estate market has been on a steady climb since 2012, and 2016 appears to be more of the same. As 2015 came to a close, all real estate market parameters are inching up, suggesting that continued strength and price increases are on the horizon. Those who are considering purchasing real estate in Washington D.C. will face continued strong competition for property. Homeowners who are interested in selling real estate in the city should take advantage of the surge in sales activity and increase in property values as we head into the new year.
Increasing Sales Activity
According to market statistics, the numbers of closed sales in Washington D.C. in November 2015 were 8,603, up from the five-year November average of 7,937. In addition, the numbers of pending sales in November 2015 were 10,825, while the five-year average has been 9,548. This demonstrates that overall market is heating up throughout the metropolitan area, allowing sellers to connect with interested buyers.
Falling Real Estate Inventory Levels
Throughout Washington D.C., real estate inventory levels are dropping. As of November 2015, Washington D.C. had 4.1 months of supply, significantly less than the going five-year November average of 4.6 months. When a real estate market experiences falling inventory, there are either fewer sellers or more buyers taking properties off the market. In Washington D.C. buyer demand is heating up, while many homeowners are holding off on the sale, insisting on higher property values before listing their property on the market.
Increasing Median Sales Value
Since the amount of demand throughout Washington D.C. is greater than the supply, both the listing price and the median sales price are increasing throughout the city. Presently, Zillow has estimated that median property values are $500,300, a 7% increase over the year. According to Trulia, the median list price throughout Washington D.C. is $650,241, up 3.3% on the week and the median sales price is $510,000, up 5.2% from September. Over the course of 2016 alone, property values are expected to increase 3.1%, giving those who are interested in selling or buying real estate in Washington D.C plenty to consider.
Take Advantage Of The Washington D.C. Real Estate Market
Homeowners who are in a position to sell their house in Washington D.C. and are satisfied with their property values have every reason to take action now, as the market is favorable to them. Those who are looking to purchase real estate in Washington D.C. will face continued strong competition.