Supply and Demand in Washington DC (city, not region) – Our fall real estate market began at Labor Day. Looking back at the last six months, you can see that supply (the blue bar) has stayed under 2 months. What does this mean? If no new listings came on the market, this is how long it would take to sell all of the homes currently on the market. In August, that number was 1.83 months. (Anything less than 5 months is considered a seller’s market). The absorption rate (the green bar) is the rate at which homes are sold. In August, the absorption rate was 0.57 which confirms that the month of August was a seller’s market.
The growth in housing inventory is down from last year, and continues to decrease month-after-month. If this continues, it is likely we will see an increase in prices. This is something I am watching and I will keep you informed.
If you want to know more about a specific neighborhood, let me know. I would be happy to send you market stats for that neighborhood.
(Data chart provided by RealEstate Business Intelligence from MRIS).