Increased DC housing demand pushes prices to recent milestone
The median home sales price in the District cracked $400,000 in June for the first time in four years, according to The Washington Post. This represents a 5.3 percent increase over June 2011, and could signal that the market has nearly fully recovered from the downturn. It could also signify that demand, which is not slowing, could reach new heights and that now may be an ideal time to buy one of the houses for sale in Washington, DC.
One factor playing a large role in the rising median price is the diminishing housing inventory. As motivated buyers continue to quickly scoop up properties off the market, the number of available houses in the District drops. June signified the Washington metro area's 16th consecutive month of year-over-year declines in active listings, according to the source.
In fact, the number of listed properties in June decreased to a historic low of 10,374, 33 percent lower than a year ago. Compounding this, June's list of new properties for sale totaled only 5,588, the lowest total for June since Real Estate Business Intelligence started tracking the category in 1997.
If these trends continue - and experts say there is no reason to believe they won't - potential buyers may want to act now or risk seeing their available options drop even more.
It's not only individual buyers who are recognizing this as an ideal time to buy. Investors are racing to the area to buy properties, sensing a sizeable return on investment. Holly Worthington, a local real estate expert who has been working in the area for 30 years, told the news source that she views this period as the best time to get value in the marketplace.
"Investors know that this is a great time to buy and that the market is going up," she said. "We're past the bottom of the market pricing cycle. I've been through three dips before. We're past the bottom of it. There's no doubt about it."
Of course, the natural response to promises of sound investments and large investment returns is an uptick of demand, which is undoubtedly occurring in the District. Worthington and other experts say they have been deluged with offers for properties. In previous years, they may have received a handful of offers for a specific property. This summer that number has swelled to 20, 30 or even more for highly coveted homes.