April 14, 2017 | Josh Sullivan
Median sales price for the DC metro during the month of March reached $420,000, the highest level ever recorded. While sale prices rose, inventory continued to decline in the DC metro for the 11th consecutive month.
Washington DC experienced a 5.18% increase YoY in median sales price, reaching $535,000. In addition to sales price rising, the number of closings for DC improved as well. The District recorded 778 closings in March, up 19.1% YoY. The closings were distributed across multiple property types with condos/coops accounting for the majority with 357 sales, up 16% YoY. Detached single-family homes increased 15.1% YoY totaling 122 closings for the month. 256 of the sales were townhouses increasing an astounding 24.7% YoY.
Arlington County, VA
Closings in Arlington followed suit with DC, rising 18.3% YoY to 252 closings across all property types. While closings rose, median sales price dipped slightly to $508,500 compared to $540,000 last March. The dip in sales price could be attributed to the shift of buyer trends from detached single-family homes to attached residences such as townhouses or condos. Out of 252 closings, only 82 were single family-residences, down 3.5% YoY. The vast majority of closings were condos (143) due to the upswell of condo developments in Arlington over the past few years. While only 27 townhouses closed during March, that was a significant increase over last year’s closing of 20. It is safe to say that due to shrinking lot sizes and amenity-demanding buyers, Arlington will continue to increase its attached residences stock.
Fairfax County, VA
Fairfax County saw an 8% increase YoY for with a median sales price of $497,000. Closed sales also improved to 1256, a 16% increase YoY. As expected, most of the closings were concentrated within detached single-family residences, totaling 633 sales. Townhouses increased more than 10% YoY, posting 359 closings. Condos also experienced a similar growth, increasing 6.9% YoY to total 264 closings.
Though the DC metro is continuing to experience a tight supply, buyers are not shying away from the inflated prices. Not only was $420,000 the highest median sales price ever recorded, but closed sales throughout the region also set a record with 4,450 sales, the most we’ve seen in over a decade. These trends combined with increasing rents are pushing residents to make the leap to home ownership in and around the District. Now that the sun is shining and spring is here, we expect to see this trend continue as peak buying season is upon us.