Recent pending sales data suggests home buying activity in Washington, D.C. should be up on a year-over-year basis during early 2016. While activity and pricing vary by for-sale segment, DC should continue to motivate sellers this year.
In November, there were 714 new pending sales in the district, an 8.7 percent year-over-year rise, according to data from Real Estate Business Intelligence (RBI). Leading the way was the condo/co-op sector with 336 pending sales, which equated to a 25 percent year-over-year jump.
While detached homes and townhomes have recently escalated in value, condo values have remained relatively unchanged on a year-over-year basis, sitting at $435,000. Being that this product type represents the most affordable housing option in the district, it’s no surprise the segment accounted for nearly half of all pending sales in November.
Entering December, there was 2.1 months of condo supply, according to analysis of RBI data by the Greater Capital Area Association of Realtors.
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Pending sales in the townhome segment were down 5.9 year-over-year in November; however, it appears price appreciation isn’t slowing down. The median sales price for a townhouse recently stood at $680,000, a 13.4 percent year-over-year and the highest median price reached in any November. At the start of December, there was only 1.5 months of townhome supply.
Detached homes increased even more than townhomes, up 26.9 percent year-over-year to $825,000. Despite this significant gain in value the volume of pending sales, 122, spiked by nearly 9 percent year-over-year.
Combining all housing segments the district entered December with only two months of total supply, including 2.5 months of inventory in the $1 million to $2.5 million luxury home sector. Inventory has remained low despite a nearly 15 percent year-over-year rise in listing activity, which suggests properties are selling fast once listed.
