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Market Summary
The Washington, DC housing market continued to suffer from a shortage of inventory in April with 33% fewer single-family homes, condominiums and cooperatives on the market than last year according to Real Estate Business Intelligence (RBI). There were 20% fewer new listings compared to April of 2011, but there was still an 11% increase in pending sales for the month. However, this increase came exclusively from the condo/co-op side as it continues to recover from a lackluster 2011 performance.
With the low inventory and high demand for homes, buyers are facing increased competition for homes as multi-offers have become more common. In April, the average days on market fell 19% (from 83 days on average to 67) from last year as 30% of the properties that sold during the month were on the market less than 10 days and 57% listed in April were under contract or sold by the end of May. Seventeen percent of buyers in April were cash buyers, compared to 28% a year ago and to 24% for year-to-date sales.
The median price for properties sold in April was up 13% from April of last year, while the average price remained even. For the first four months of the year, the median price is up 3% and the average price up 4% compared to the same period last year. The bump in median price for the month of April is an indication that the coming months could very well see additional increases higher that the 3% year-to-date increase.
The forecast for the late spring and early summer real estate market is for more of the same. The summer months could see a lessening in intensity as some buyers take a summer vacation from the home-buying process, but with only 2.09 months of inventory it is likely that he current sales pace will continue through the summer and into the fall.
Single Family
The number of new listings for single-family homes was down 17% from April of last year, and the overall number of available homes at the end of April was down 27%. The largest losses came in the block of homes priced below $500,000 (the median price of homes sold in 2012 is $472,000). The were 39% fewer homes on the market from 2012 at this price point, while the top half of the market priced over $500,000 had 10% fewer properties on the market.
At the end of April there was 1.96 months of single-family inventory. This was the first time this number has fallen below two months since August of 2005 -- not so far off the marks set in the Aprils of 2010 and 2011 of 2.31 and 2.60 months, but substantially lower than the 5.64 and 4.60 months of April of 2008 and 2009.
New contracts on single-family homes fell 4% from April of 2011. Only two price categories registered substantial losses from last year. Pending sales of homes priced below $200,000 were down 30% and for home $700,000 and $800,000, down 31%. Homes priced from $800,000 to $900,000 were up 55%, while homes prices from $900,000 to $1,000,000 were up 36%.
For the year to date, sales of single-family homes were down 5.5% from 2011. The largest gains from last year came in the $1.25 million to $1.5 million range (up 59%) and the $600,000 to $700,000 range (up 30%). Sales of homes below $200,000 were down 27%. As the market improves it will become even harder to find lower priced homes in the District, but it is possible that we could see some relief in the middle and upper price points as the year goes on.
The median price of homes sold in the first four months of 2012 is up 5%, while the average price is up 3%. Median prices have now risen 16% from the bottom of the market in 2008, but they are still 11% below the top of the market reached in 2007.
Condominiums and Cooperatives
Condominiums and cooperatives continued their 2012 resurgence with a strong April performance. The number of new contracts on condos and co-ops in April rose 27% from 2011, to register the second best sales month in two years. Pending sales on units priced between $500,000 and $800,000 (25% of the market) were up 77% from last year, while units priced between $200,000 and $300,000 (21% of the market) were up 45%.
Through the first four months of the year, sales of condominium and cooperative units were up 12% from 2011. The highest gains were seen in $400,000 to $600,000 price range, which was up 32%, and in the $1.5 million and up range, which was up 60%.
The inventory of available units has fallen 31% from a year ago, with 23% fewer units coming on the market in April of 2012 compared to 2011. All price ranges under $800,000 have suffered double-digit inventory losses from 2011. The number of units priced over $800,000 is only down 5%. At the end of April there was 2.45 months of available inventory, compared to 4.53 months last year. In 2011, there was over four months of inventory in all but one month of the year. So far in 2012, all but one month has registered less than three months of inventory.
The average price of a condominium/cooperative unit in 2012 is unchanged from 2011. The median price is up by 3%, and has now equaled the high point reached in 2005. Condo/co-op prices have avoided the double-digit, double-dip loss seen in 2009 on the single-family side and have remained more stable since the peak of the market.
