Homes sold in as little as two weeks in some areas of Washington, D.C., in October. Buyers were in competition for limited inventory, and some neighborhoods saw homes sell for above asking price. The Long & Foster Market Minute report for 15 areas within Washington, D.C.
Days on the market fell to 25 days on average in the District, lower than the September average of 30 days. Median sale prices rose 3 percent in October compared to a year earlier, while inventory was flat. Meanwhile the number of units sold rose in most areas, doubling in some neighborhoods.
The rapid pace at which real estate sells in some neighborhoods shows the desirability of those areas, with the forces of high demand and low inventory are causing prices to rise, said Larry “Boomer” Foster, president of Long & Foster Real Estate. Columbia Heights and Mount Pleasant recorded an average of just 20 days on the market, while prices rose 11 percent to $734,000. Buyers were paying 100.4 percent of list prices in those areas.
“It’s a reflection of the fact there’s not a lot to sell, and these are places where people want to be,” Foster said. “People are willing to pay more than the sellers are asking.”
Those who are looking to buy in D.C., but not in the upper price ranges, might find opportunities in the Southwest and Waterfront neighborhoods, where median sale price fell 11 percent to $371,000, and homes were on the market an average of 38 days, Foster said. Several other high-demand neighborhoods also saw average prices in the $300,000s, with homes selling at or above list prices.
There was a 2.1-month supply of homes in the district in October, down 23 percent from a year ago. It’s generally considered a seller’s market when there’s less than a six-month supply of available homes.
A buyer in today’s market needs to enlist the help of a reputable agent who will be proactive in seeking out homes for sale in desired locations, Foster said. That could mean the agent is knocking on doors or writing letters to potential home sellers. Chances of helping a client secure a home also increase when the buyer has preliminary mortgage approval from a lender.
Foster cautioned that affordability could become more of a challenge for buyers in the coming year, when interest rates are expected to rise.
“If interest rates move up and prices continue to appreciate, as we believe they will, then the house you want today could be unaffordable for you in the future,” Foster said. “So if you want to get in, get in now. Don’t wait.”
The Long & Foster Market Minute is an overview of market statistics based on residential real estate transactions for more than 500 local areas and neighborhoods and over 100 counties in eight states. The easy-to-read, easy-to-share reports include information about each area’s units sold, active inventory, median sale prices, list to sold price ratio, days on market and more.
Information included in this report is based on data supplied by Metropolitan Regional Information System and its member associations of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and they do not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of MRIS or Long & Foster Real Estate.