Market Roars with Stronger Inventory, Sales and Contracts

The March housing market came in like a lion and it’s expected to continue to roar as the DC metro area kicks off its spring selling season.The March housing market came in like a lion and it’s expected to continue to roar as the DC metro area kicks off its spring selling season. Its momentum continued with another strong month showing year-over-year (YoY) increases in sales, new contracts, inventories, and median days-on-market compared to March 2014, according data analyzed by RealEstate Business Intelligence (RBI).It’s good news for both buyers and sellers with some numbers hitting levels that haven’t been seen in years – inventories up almost 50% from 2013 lows; the strongest period for inventory since 2007-2008 with 15 months of increases; sales prices at highest March-level since 2007; and closed sales at its best March since 2010.For the period of January through March 2015, all jurisdictions showed increases in sales and median sales price, except for Fairfax City. Prince George’s and Montgomery Counties had 42% of all sales in the region, but 85% of foreclosure sales.Overall, this spring is taking shape on a positive note, with buyers happy with more inventory choices across all market segments, and sellers happy with a 97.1% ratio of sales price to the original listing price (Avg SP to OLP ratio).Number of Closed Sales: Double-digit increases  March outpaced the increases of the last three months, with 15.6% hike in YoY closed sales. It was the first time since October 2013 that all market segments experienced double-digit growth. Compared to March 2014, sales of single-family detached homes increased 19%; townhome increased 15.7%; and condo units by 10.6%. Since last month, all segments saw sales go up, with 45% increase in single-family detached homes; 45% increase in condos; and 30% increase in townhomes.When looking at YoY sales in the DC region’s jurisdictions, Arlington County had a 24.4% increase in sold listings; Prince Georges County had a 29.6% increase, and Washington, DC had a 3.4% increase.Under Contract: Fifth straight month of increases March contracts exceeded both the 5-year average of 5,409 and the 10-year average of 4,984. It was the best YoY increase since February 2012 – with 12.4% increase with single-family detached homes, 9.8% increase for townhomes; and 9.1% increase in condos. Plus, data showed a 36% bump in overall contracts from last month, February 2015.Prices: Median sales prices at highest March level since 2007 The DC metro median sales price was $400,000, showing an increase of 2.6% or $10,000 compared to last March. All market segments had prices rise except for a small dip in single-family detached homes. Arlington County had the highest increase in YoY price increase of 10.7%, from $515,000 to $570,000.Inventory: Up almost 50% from 2013 lows, and active listings increasing for 18 consecutive monthsThere were 9,015 active listings by the end of March, an 18.6% increase from last year and 10.3% increase from February. Inventory still remains lower than the 10-year March average of 14,030 but is approaching the 5-year average of 9,535. Condo YoY inventory took the lead with a 22% increase in active listings, townhome listings came in second with 19.4% increase, followed by single-family detached homes at 16.4% increase.  However, new listings of single-family detached homes increased the most with 17% or 509 units. Overall, new listings rose 41.5% from the prior month, February 2015.Days-on-Market: Median DOM increases to 25This March single-family detached homes had a median DOM average of 32 days, condos had 22 days, and townhomes with 20 days.As you can see, the DC real estate market is alive and healthy! There is a very healthy market for both buyers and sellers, which is a perfect place to be! Happy hunting!