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. 

Closed sales decrease from the prior year for fifth consecutive month

OVERVIEW

The Washington, DC Metro Area continued the pattern of low buyer activity in May.  Closed sales and new pending contracts decreased from last May by 10.6 percent and 4.5 percent, respectively.  But both were above their May-levels in 2011 and 2012 with new pending contracts above their May-levels for all years from 2006 to 2012.  As in recent months, bank-mediated sales decreased at a faster rate than non-bank-mediated sales and contributed to the overall decline in closed sales.  The median sales price continues to rise, likely due to both the decline in bank-mediated sales and tight inventory.  The median sales price increased 1.2 percent and reached the highest May-level on record with data going back to 1997.  Seller participation continues to increase and both active listings and new listings rose.