DC Metro home sales, prices down from last year, but above five-year June average

Median sales price falls for the first time in over two years; Sixth month of year-over-year decreases for closed sales

OVERVIEW

Buyer activity remained below year-ago levels in the Washington, DC Metro Area.  Closed sales declined by 4.5 percent and have now been below their 2013-level every month this year.  New pending contracts also fell from this time last year and have done so for seven consecutive months.  While buyer activity is lower than last year, both closed sales and pending sales continue to outpace 2011 and 2012 levels.  The median sales price decreased from the prior year for the first time since January 2012, possibly tempered by the slowing pace of sales.  All property segments had a decline in median sales price, but only three of the jurisdictions did: the city of Alexandria, Montgomery County, and Washington, DC.  But at $433,000, the median sales price for the region was higher than any month except June 2013 since July 2007. 

The number of homes for sale continues to rise and active listings increased 33.6 percent from last year.  The number of active listings reached its highest level in over two years but is only 42.7 percent of its 2007-peak.  New listings increased 10.4 percent from last year, marking the fourth month in a row new listings have risen from the prior year.

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CLOSED SALES

Sixth consecutive month of year-over-year declines; higher June-level than 2012 and 2011.  For the sixth consecutive month, the number of closed sales in the Washington DC Metro Area decreased from the prior year.  There were 5,003 sales in the region in June, 4.5 percent, or 234 sales, fewer than this time last year.  Closed sales were higher than in June 2012, June 2011 and the 5-year average for June, but they were below the 10-year average for June.  Of the property segments, only condo properties had more closed sales than this time last year, increasing by one sale, or 0.1 percent.  The number of closed sales of single-family detached homes decreased 5.3 percent, or by 137 sales, from last June.  Townhomes had the steepest decline, falling 7.5 percent, or by 101 sales, from last year.  As compared to last month, the number of sales increased 9.9 percent, which is a milder increase the 10-year average May to June change of 11.0 percent. 

PRICES

Prices decline for all property segments; first year-over-year decrease in over two years.  For the first time since January 2012, the median sales price for the region was lower than the prior year.  At $433,000, the median sales price in the Washington, DC Metro Area decreased 1.6 percent, or by $7,000, from last June.  Prices are still higher than their 5-year and 10-year averages for this time of year.  .  All property segments had a lower median sales price than in June 2013.  The median sales price for townhomes fell 1.9 percent, or by $7,800, to $407,200.  At $550,000, the median sales price for single-family detached homes decreased by $10,000, or 1.8 percent, from last year.  The median sales price for condo properties decreased 1.6 percent, or by $5,000, from June 2013 to $300,000. 

Of the jurisdictions, Falls Church City had the highest growth in in median sale price, increasing 17.0 percent.  But with 22 closed sales, the median sales price of the jurisdiction is sensitive to changes in property type and size.  Three jurisdictions in the area had declines in median sales price from this time last year: the City of Alexandria (-3.9 percent), Montgomery County (-3.5 percent) and Washington, DC (-1.7 percent).  This is the first year-over-year decline for Washington, DC in over two years.

NEW CONTRACTS

Seventh consecutive year-over-year decrease; declines in single-family detached homes and townhomes.  The number of new contracts declined from last June, falling by 5.1 percent, or by 278 contracts, to 5,156 contracts.  While this is the seventh consecutive month of year-over-year decreases, the number of contracts is above the June-levels in 2006 through 2012.  Only condo properties had more new contracts than last year, increasing by one contract, or 0.1 percent.  New contracts for townhomes declined 4.6 percent, or by 64 contracts, from last June.  Contracts for detached single-family homes had the sharpest decline, falling8.1 percent, or by 217 contracts.  New contracts decreased 9.3 percent from last month, which is a steeper decline than the ten-year average May to June change of -6.6 percent. 

INVENTORY

Ninth consecutive month of year-over year increases for active listings; fourth consecutive month of year-over-year increases for new listings.  Active listings in the Washington, DC Metro Area increased 33.6 percent, or by 2,785 listings, from last June to 11,066 listings.  This is the highest level of any month since November 2011.  Active listings have now increased from the prior year for nine months in a row.  Even with this increase, active listings are 57.3 percent lower than their September 2007 peak.  Active listings for townhomes increased 44.9 percent, or by 619 listings and led all property segments in growth.  Active listings for condo properties increased by nearly as much, rising 36.1 percent, or by 704 listings.  There were 6,402 single-family detached home active listings, 29.5 percent, or 1,459 listings, more than last year.

New listings have increased from the prior year for four consecutive months.  There were 6,822 new listings in June, an increase of 10.4 percent, or 642 listings, from June 2013.  New listings for townhomes had the highest growth of the property segments and rose 14.8 percent, or by 220 listings from last year.  New listings of single-family detached homes rose 10.0 percent, or by 308 listings, from this time last year, and those for condo properties increased 7.0 percent or by 113 listings.  At 13 days, the median days-on-market is four days higher than last year but remains lower than the 10-year June-level average of 24 days.