Highest November Contract Activity in 5 Years, Inventories Continue to Shrink

Rockville, MD –(December 12, 2011) – The following analysis of the Washington, D.C. Metro Area housing market has been prepared by RealEstate Business Intelligence (RBI), and is based on the November 2011 RBI Pending Home Sales Index™ released today.

View PDF version of this release

OVERVIEW

The number of contracts signed in the Washington, D.C. metro area for the month of November outpaced the 5-year November average pace by 23.3%.  While month-over-month sales usually decline at this time of year in this market, with a 10 year average drop of 6.2% , there was actually a 3.9% month-over-month increase in closed sales this November. Median sales price also showed an improvement over seasonal patterns,  increasing 4.7% from October to $335,000, whereas the 10 year average change is a nominal 0.3% increase month-over-month. While the median sales price showed some resilience, due in part to a 13.6% decline in foreclosed sales from October, it slipped 3.0% year-over-year from November 2010.

Pending Sales Up from Last Year, but Median Sales Price Dips

Rockville, MD –(November 10, 2011) – The following analysis of the Washington, D.C. Metro Area housing market has been prepared by RealEstate Business Intelligence (RBI), and is based on the October 2011 RBI Pending Home Sales Index™ released today.

View PDF version of this press release

OVERVIEW

October 2011 contract activity in the Washington, D.C. metro area outpaced seasonal patterns, attaining a level that was 18.6% higher than the 5-year October average. There were 4,125 new contracts written in October 2011, 10.4% ahead of the September 2011 total of 3,829. For the past 10 years, new contract activity has averaged a 4.3% increase from September to October.

The median sale price of $320,025 was 5.9% lower than October 2010. This, combined with the marked 23.3% month-over-month decrease in new listings, can partially be attributed to the lower jumbo mortgage limits which took effect October 1. There is evidence that the lowered jumbo mortgage limits may have kept potential high-end sellers out of the market and decreased the number of buyers willing or able to go after the higher priced home segment. New listings were down over 13.2% compared to October 2010 and down 20.3% from the 5-year October average. The attached home segment (townhouses, condos and coops) saw only a slight dip of 1.7% in median sales price year-over-year, with a $285,000 level in October 2011. This is consistent with the fact that the majority of jumbo mortgages are associated with detached properties.