Washington, D.C.’s for-sale housing inventory is starting to build during a period of increased sales activity.
At the end of March, supply in the district was up by nearly 22 percent year-over-year, reaching roughly 2.5 months, according to data from Metropolitan Regional Information Systems (MRIS).
An estimated 1,261 new listings hit the market last month in Washington, D.C., the primary reason for this inventory growth. The new listings figure for March equated to a more than 27 percent year-over-year rise in activity.
According to Andrew Strauch, vice president of MRIS, more district residents mulling over whether to list their home will lean toward selling in the coming months thanks to a flattening out of home prices, future interest rate hikes and increasing sales activity.
Last month the median sales price of a district-located home stood at $506,000, which was up only slightly from the $500,000 figure seen in March 2015.
The volume of closed sales in March were up by 12 percent year-over-year, reaching 653 transactions. Pending sales where up 13.2 percent totaling 942 sales.
Strauch said the largest shift in DC sales activity has occurred within the condo and townhouse sector. He explained that current condo owners are looking to purchase newly-built units and sell their current residences, often to millennials.
Several other market conditions suggest now is a favorable time for seller’s to list.
Last month the averages sales-to-list price ratio in the district stood at 98.9 percent, which is a fairly consistent figure. Also relatively unchanging has been median days on the market, which stood at 14 last month.
A double-digit rise in new listings activity doesn’t always equate to a rise in supply.
Last month the cities of Alexandria, Falls Church and Fairfax also saw new listings volume rise by more than 10 percent; however, only in Falls Church did overall supply increase. The two other cities experienced year-over-year declines in supply.
