Increase in closed sales despite winter weather

OVERVIEW

February was another unusually cold and snowy month in the Baltimore Metro Area, but the weather had less of an impact on activity in the housing market than in January.  The number of closed sales increased 5.9 percent from last February, with increases in all property segments.  But the number of new contracts signed in February fell 1.7 percent from last year, driven by declines in townhomes and single-family detached homes.  While buyer activity was mixed, seller activity continues to improve as compared to the prior year.  New listings increased 2.3 percent and continued to contribute to increases in active listings.  There were 10,107 active listings at the end of February, 7.4 percent more than the same time last year.  Despite this increase, inventory remains low and is only half of its 2008 peak level.  The tight inventory may be playing a role in price growth and the median sales price for the region increased 7.6 percent from last year.  As the weather improves, both buyers and potential sellers may be more inclined to enter the market.

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Winter weather dampens buyer activity though price gains continue; Active listings increase across all property segments

OVERVIEW

The DC Metro Area was off to an unusually cold and snowy start, likely affecting buyer activity in the region.  Closed sales decreased 2.1 percent from last January with declines in both single-family detached home and townhome sales.  New contracts also decreased from last year, falling 10.5 percent with declines across all property segments.  However, seller activity continues to improve and both active listings and new listings increased from January 2013.  Active listings rose 11.5 percent from this time last year, marking the fourth consecutive month of increases for this indicator.  For the first time in over two years, there were gains in active listings for all property segments.  Even with this increase, supply remains tight and is only 26 percent of its 2007 peak level.  New listings increased 1.7 percent from last year which is a milder increase than in prior months.  The median sales price increased from the prior year for the 24^th month in a row, rising 7.8 percent from last January.  While sellers are returning to the market, winter weather may dampen buyer activity in the remaining winter months.

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