After a recent pattern of rising inventory and declining sales, the April housing report by ShowingTime indicated that the housing market had improved. The DC metro area market offered record home prices together with robust sales.
The median home price in the DC area hit an all-time high of $475,000 in April, a 5.6 percent year-over-year increase. Home prices rose in every jurisdiction in the area, except for DC proper where they fell slightly, but still by less than a percent.
"[The record prices] were driven by a 6.4 percent increase in condo pricing along with a higher ratio of single family homes sold as compared to condos and townhouses,” said Andrew Strauch, Vice President at Bright MLS.
Despite prices hitting an all-time high, home buyers were undeterred. There were just shy of 5,000 closed sales in the region in April, the highest level for the month in ten years. It was also the first month since last July that home sales rose on an annual basis. In addition, buyers were not getting a discount. The average percent of original list price received at closing was 99.3 percent, the highest level for the month of April in the last decade.
Prospective home buyers who hoped that the inventory of homes for sale would continue to rise in the coming months will be disappointed by the news in April. Driven by rising sales and fewer new listings coming online, the inventory of homes for sale in the region fell 13 percent last month and are now just six percent above the 2013 low of 7,123 active listings. The inventory for every property type fell, with condo supply dropping by 26 percent.
It is not surprising with such tight inventory that in areas like Dupont Circle some condos are receiving over 20 offers!