June 23, 2016 | Isabella Schnider
According to RBI (RealEstate Business Intelligence), May proved to be a hot month for sales in the D.C metro area, reaching an all-time high over the last ten years.
During the month of May, there were 5,432 recorded sales, an increase of 12.3% from last year. Additionally, last month marked the 18th consecutive month in which closed sales increased year-over-year.
While we are seeing the number of closed sales continually increasing, inventory has not been able to keep up with 7,436 new listings on the market last month – a 10% drop from last year and 15.6% decrease from last month. Active listings in the area have declined year-over-year to 11,072 – the first time inventory has annually declined since September 2013.
Single-family homes fell 12.8% and condo listings have dropped 4%, the only jurisdiction in the area where inventory actually increased with DC proper. RBI’s Elliot Eisenberg had predicted that housing inventory would turn negative at some point this year when he said, “I do not know if it will be April or May or June, but I bet it will happen by mid-year”. Eisenberg expects the cycle of negative inventory could last around 18 months.