DC Area - Still a Seller’s Market
The DC area has shown a rise in active inventory this past year, and a rise of about 25 percent year after year. This doesn’t mean we will be seeing a buyer’s market in the near future though. The demand still remains higher than the supply.
The market inventory to purchase an attached property (condo, co-op, row house) remains at an historical low. To determine whether a market balance is either a buyer's or seller's market, RBI measures “months of inventory.”
For example, two months of inventory means the number of homes for sale currently would last two months at the current sales pace if no new homes came on the market. Four to six months of inventory is typical of a balanced market. The DC area showed 2.3 months of supply at the end of April, 2014; the supply in the attached property market stayed at 1.8 months.
According to the measurement of number of days homes spend on the market, the charts are still showing the market to be in favor of sellers. It’s a seller’s market when that number is smaller than 14 days. Half the homes in the DC area were on the market for 13 days or less in April.
Home prices also remain high, which explains the demand for attached properties. If current trends of high home prices and first-time buyers being encouraged to purchase attached properties because of their lower price points continues, the DC market could become more balanced soon.
We are not seeing the double-digit price increases that we saw at this time last year. This, in addition to an inventory that has been rising, could even things out making the seller’s market in the DC area lean toward being a buyer’s market.
Are you a first-time home buyer? Are you interested in the lower price points of a DC area condo, co-op or row house? Are you a seller interested in taking advantage of the current seller’s market?
Give Sheena Saydam a call at 202-476-9463 or 202-243-7700. Or send an email to Sheena@SaydamProperties.com. We can help you live your good life in the DC area.