In March, the median sale price increased by 4% while inventory fell by 8% in Washington, D.C., according to the latest Long & Foster Real Estate Market Minute report. 

Spring Valley and Wesley Heights had a massive increase in median sale price with a 90% rise followed by Logan Circle and Dupont, which had a 23% rise. Inventory fell in most neighborhoods with Southwest and Waterfront having the largest decrease of 50%, followed by Anacostia and Hillcrest whose inventory fell by 31%. Numbers of homes sold had a 7% decline across the region, however there were some striking triple-digit increases in some areas. Southwest and Waterfront had a 150% increase followed by Chevy Chase DC, which had 113% rise. 

The Long & Foster Real Estate Market Minute report provides data for 15 neighborhood areas within Washington, D.C.  

“It’s a challenging marketplace when you look at the number of units’ year-over-year coming down pretty dramatically, especially around Washington, D.C.,” said President of Long & Foster Real Estate, Larry “Boomer” Foster. He said some of the numbers are likely on account of the Amazon effect that has been present since December. 

Foster said the numbers reflect that there are not enough homes on the market to be sold in conjunction with inventory levels. “We just don’t have enough quality inventory to sell, but the good news is median sale prices are going up at a moderate pace,” he said. Foster reminds consumers that real estate trends are very hyperlocal and they should not expect to see the same story pan out across all areas. 

In terms of the current spring market, Foster said that both buyers and sellers should be excited. From a buyer’s perspective, interest rates are low and home affordability is higher than expected. In February, the home affordability index went up to almost 157. This means that someone at the median household income has 57% more money than is needed to afford the median home price. Foster said how homes are “more affordable now than they were at any point between 1980 and 2008,” so buyers are in a good spot to purchase a new home. 

For sellers, Foster said, “Any seller with equity that wants to sell is in a sweet spot because of limited inventory.” He said if the seller is in a desirable geographic area with a good price point, they can dictate a lot of terms of the sale and buyers will be willing to work with them. While some people may be worried about their sale lining up with their ability to move elsewhere, especially if they want to wait for the end of the schoolyear, they should not hesitate. From an inventory perspective it makes sense to just go on the market now unless upgrades are needed to make it more buyable, he said.  

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.