DC home prices hit a record high this year with a median sales price of $460,000 in the city. That’s the highest median sales price ever in the District of Columbia and a 13.6% increase from last year according to RealEstate Business Intelligence.
Home prices in Northern Virginia experienced an even steeper increase between March 2012 and March 2013. Alexandria City prices rose 24.4% to a median of $487,500, and home prices in Falls Church City were up 37.7% to $631,000. Only one jurisdiction in the report experienced a decrease in median sales price; Fairfax City median prices decreased by 11.5%.
You might think that DC home prices are scaring buyers away, but it’s just the opposite! The rates of home sales are the highest we’ve seen in eight years and homes aren’t staying on the market very long. Currently, the median number of days-on-market (DOM) is 15, which is three times less than last year and the lowest level in seven years. That may be due to the low inventory of homes in the DC area. At the end of March, there were 6,289 active listings, which is less 4,200 less than the same time last year.
The region has experienced double-digit growth in the condo and townhouse market. Townhouses saw 10.4% sales growth from last year with median sales price up 10.6%, an increase of $35,000. But townhomes continue to have the lowest supply since 1997 making up only 15.8% of all listings in the DC area. Sales in the condo market were the highest of all property segments, up 17% from March 2012 to March 2013. There were 1,001 condo sales in March 2013, which is the most March sales in six years. Median prices of condos were also up $9,050 or 3.4%. Despite price increases, the lower price points of condos make them especially attractive to first-time buyers and older people looking to downsize.
The median sales price of the entire DC region rose from $325,000 to $355,950, a 9.5% increase. If inventory continues to stay low, we may see even more increases in DC home prices.