Washington D.C. Metro housing market closes out 2017 with record high December house price of $420,050; December inventories decline for 20th consecutive month and approach decade lows


OVERVIEW

  • Washington D.C. Metro’s December median sales price of $420,050 was up 2.4% or $9,950 compared to last year.  For the calendar year ending December 2017, the overall median sales price was up 2.4% to $425,000.  In 2017, each month’s median sales price was higher year-over-year and every month’s median sales price was the highest monthly level of the decade.
  • Closed sales of 3,886 were down 3.4% compared to last year and were 4.8% below last month.  
  • New contracts of 3,314 were down 6.3% compared to last year and down 22.0% compared to last month.
  • New listings of 2,799 were down 9.4% compared to last year and down 35.0% from last month.
  • Active listings of 6,734 are down 9.7% compared to last year and down 22.0% compared to last month. This is the 20th consecutive month of declines in year-over-year inventory.
  • The average percent of original list price received at sale in December was 97.2%.
  • The median days-on-market for December 2017 was 27 days, two days lower than last year.

 

  • December’s regional median sales price of $420,050 was an increase of 2.4% or $9,950 compared to last year, but was down 1.2% or $4,950 compared to last month.  This is the 15th consecutive month of year-over-year price increases and was the highest December level of the last 10 years.
  • Compared to last year, single-family detached home prices increased 5.2% to $515,285, townhome prices rose 1.5% to $410,000 and condo prices rose a slight 0.1% to $299,800. 
  • December prices are above the 5-year average of $404,902 and the 10-year average of $369,101.
  • The regional price of $420,050 is 31.3% higher than the market low of $320,000 seen in 2009.
  • Falls Church City remains the most expensive location in the region, with a median sales price of $725,000, up 6.8% from last year.
  • Prince George’s County remains the most affordable area in the region, with a median sales price of $280,000, a 5.7% increase over last year. 
  • For the year, the overall regional median sales price of $425,000 was up 2.4% compared to 2016 and all jurisdictions saw positive price growth over the prior year.

 

  • Closed sales of 3,886 were down 3.4% from last year and down 4.8% from last month. 
  • Only condo sales rose compared to last year, increasing 3.2% to 1,037.  Townhome sales were down 2.0% to 1,052 and single-family detached sales were down 7.6% to 1,797.
  • Sales were above the 10-year average of 3,626, but dipped below the 5-year average of 3,938.
  • December’s closed sales were 24.1% above the market low of 3,131 seen in December 2008, but were 7.4% below the decade’s high of 4,198 seen in 2015.
  • Sales activity across the region was mostly down, with gains in Fairfax City (+90.0% to 38 sales) and in Washington D.C. (+10.0 to 695 sales).  The smallest decline in sales was in Montgomery County (-2.8% to 926 sales) and the largest decline was in Falls Church City (-35.7% to 9 sales). 
  • For all of 2017, closed sales across the region were up 4.1% to 55,700.   

 

  • New pending sales of 3,314 were down 6.3% compared to last year, and were down 22.0% compared to last month. 
  • Pending sales of single-family detached homes were down 10.8% to 1,479, while condo pending sales decreased 2.5% to 941 and townhome pending sales decreased 2.2% to 893.
  • Pending sales are above the 5-year average of 3,281 and the 10-year average of 3,084.
  • December’s new pending sales were 39.7% more than the December 2008 low of 2,372.
  • Pending sales activity across the region was mostly down, with Washington D.C. (+3.2% to 613) and Alexandria City (+2.3% to 136) showing the only increases compared to last year.  Prince George’s County saw the smallest decline (-2.9% to 894) and Falls Church City saw the largest percentage decline (-66.7% to 2).

 

  • December’s 2,799 new listings were down 9.4% from last year and down a seasonal 35.0% from last month. 
  • Compared to last year, new townhome listings were down 1.0% to 762, new single-family listings were down 11.1% to 1,281, and new condo listings were down 14.1% to 753.
  • New listings are slightly below the 5-year average of 2,891 and the 10-year average of 3,054. 
  • December new listings are 13.5% above the 10-year low of 2,465 seen in December 2012, and are 31.4% below the peak of 4,079 seen in 2008.
  • Across the region, Falls Church City saw the largest percentage decline in new listings (-63.6% to 4).  The only increase was in Prince George’s County (+7.4% to 871).
  • For all of 2017, new listings across the entire DC Metro area were up 2.1% to 74,659.

 

  • There were 6,734 active listings at the end of December, down 9.7% compared to last year and down 22.0% compared to last month.  Inventory levels have declined for 20 consecutive months.
  • Townhome inventories were up 3.9% to 1,351, while single-family detached inventories were down 12.3% to 3,560 and condo inventories were down 13.2% to 1,815.
  • Inventories are well below both the 5-year average of 7,609 and the 10-year average of 10,269.
  • December inventory levels exceed the 2012 low of 6,466 by just 4.1%, but are down 68.1% from the peak of 21,080 seen in December 2008.
  • Across the region, inventory levels showed the largest gain in Fairfax City, where they increased 28.9% to 58.  The largest percentage decline was in Falls Church City where they dropped 45.0% to 11.

 

  • The regional average sales price to original listing price ratio (SP to OLP ratio) for December was 97.2%, up from last year’s 97.0% but down from last month’s 97.4%.  This is the highest December SP to OLP ratio of the decade.
  • Townhomes have the highest December SP to OLP ratio of 98.2%.  Condos have a SP to OLP ratio of 97.1% and single-family detached homes have a SP to OLP ratio of 96.6%.
  • December’s SP to OLP ratio exceeds the 5-year average of 96.8% and the 10-year average of 95.2%.
  • Over the last decade, the lowest December average sales price to original listing price ratio was in 2008, when it was 91.2%.  The previous December high had been in 2012 where it was 97.1% 
  • Fairfax City had the highest regional SP to OLP ratio of 99.1%, up significantly from last year’s 95.6%.
  • Arlington County had the lowest SP to OLP ratio of 96.6%, down from last year’s 96.8%.
  • For calendar year 2017, the regional SP to OLP ratio was 98.1%, up from 2016’s 97.5%.

 

  • The median days-on-market (DOM) in December was 27 days, down two days from last year but up six days from last month.
  • Townhomes have a median DOM of 20, while condos have a median DOM of 27, and single-family detached homes have a median DOM of 32.
  • December’s median DOM was three days below the 5-year average of 30 days and 10 days below the 10-year average of 37 days.
  • This month’s median DOM of 27 is the second-lowest December level in a decade (the lowest was 25 days in 2013).  The highest December median DOM of the last 10 years was 64 days in 2008.
  • The highest median DOM in the region in December was in Fairfax County, where it was 35 days, down from 37 days last year. 
  • Fairfax City has the lowest median DOM of 16 days, down significantly from 56 days last year.
  • For all of 2017, the overall regional median DOM was 16 days, down from 21 days in 2016.

By Corey Hart for RBIntel