As we continue to browse these unprecedented times with social distancing and COVID-19 cases fluctuating up and down, the Washington DC property market feels mostly unaffected. In this short article we evaluate the realty information in the area to actually comprehend what is occurring.
For this analysis, we compared the real estate information monthly in 2020 against its 5-year average for that month. This contrast will clarify how the existing market is performing compared against historic performance, while considering regular monthly and seasonal variations.
WASHINGTON DC NEW LISTINGS:
In Washington DC, the brand-new year started strong with brand-new listings for separated homes in January, February and March being above the 5-year average for these matching months. As COVID-19 cases in the United States started to increase in late March, the brand-new listings began to taper off in April and May, dropping to 58% of the 5-Year average for April brand-new listings.
Table 1: New Listings for Detached Homes in Washington DC
|2020 Month||5-Year Month Average%Change January 148 129 115%||February||138||132||105%|
WASHINGTON DC NEW PENDINGS & & CLOSED SALES:
New Pending Sales represent the number of houses that went under agreement. When once again, a similar trend was observed, with the months of January, February and March starting strong and matching the 5-year average for those months. In April, it dropped substantially to 48%, prior to rebounding in May to about 82%. As closed sales lag the brand-new pendings by about one month, we do see the strong figures for closed sales for January, February, March, and April, followed by a drop in May to 72%. Although the June 2020 figures are not available yet, we do prepare for an increase in closed sales.
Table 2: New Pendings for Detached Homes in Washington DC
|2020 Month||5-Year Month Average%Change January 112 106 106%February 134||116||116%|
Table 3: Closed Sales for Detached Homes in Washington DC
|2020 Month 5-Year Month||Average%Change January||90 85 106%February||93||82||113%|
WASHINGTON DC ACTIVE LISTINGS:
Active listings represent the offered homes on the market. Historically, the summer season of June and July represent the peak schedule of homes on the market. The 5-year average of active listings for detached homes in May is 269 and in May 2020, there were 230 Active Listings, which is just 14% less than the 5-Year Average. If COVID-19 did not minimize the brand-new listings in April 2020, Washington DC would probably be tracking even more detailed along the 5-Year Average. The bottom line is that while the supply of acitve listings in DC have actually decreased, DC appears mainly untouched.
Table 4: Active Listings for Detached Homes in Washington DC
|2020 Month||5-Year Month Average%Change January 222 218 102%||February||194||208||93%|
WASHINGTON DC MEDIAN SOLD PRICE & AVERAGE DAYS ON MARKET: The lower stock of houses is supporting an extremely robust sellers market, maintaining strong house prices and low days on market. In 2020, the typical list prices for removed houses peaked at 113% of the 5-Year Average. The typical list prices in April and May is still well above the 5-Year Average, however rates are trending down. When the June 2020 data appears, it will be very intriguing to see if this market cooling pattern continues or if the low stock will continue driving rates up.
When we look at the typical days on market, the information is clear that houses continue to fly off the market. Both April and May had typical days on market at or under 30 days, which has to do with the 5-Year averages. With the historic low inventory of homes and strong buyer need, there would be no reason to believe this trend will dissipate anytime soon.
Table 5: Median Sold Price for Detached Homes in Washington DC
|2020 Month 5-Year Month Average%|
|Change January||$805,000||$731,600 110%February$805,000$739,690 109%|
Table 6: Average Days on Market for Detached Homes in Washington DC
|2020 Month 5-Year Month Average%Change January 51|
|43 119%February 39 41 95%March 35 38 92%|
|April 30 33 91%May 29 30 97%About Peggy||Yee|
|Peggy||Yee is a monitoring broker at Frankly|
|Realtors and||is||a local Top Producer. She|
|has||offered over||$180 million in sales and|