March 2012 - Market Update

Here are some of the key trends from March 2012 sales and market activity.  

  








Sale prices continue to rise
    The median sale price in the DC Metro Area followed February’s 6.0% year-over-year gain, increasing 7.8% over March 2011 to $345,000. The median sale price for the first quarter was $325,000, 4.8% higher than the same period last year. Every jurisdiction in the region, with the exception of Prince George’s County, posted an annual increase in median sales price in the first quarter. Fairfax City had a median sale price of $417,000 in Q1-2012, representing an 11.1% year-over-year increase, the largest in the region. Arlington had the next highest annual increase, with a Q1-2012 median sale price of $495,000 that was 10.9% higher than the Q1-2011 level.  Washington, D.C. rounded out the top 3 movers in median price for the quarter, with the Q1-2012 median sale price of $395,000 representing a 7.7% annual uptick.
    
    Closed Sales and New Contracts
    The 5,671 new contract agreements signed in March represent a 4.4% increase over March 2011. The Virginia jurisdictions and the District all experienced an increase in contract activity compared to March 2011, with new contract agreements on detached properties in the DC Metro Area were up 8.5% year-over-year and there was a 4.0% year-over-year uptick in new contracts on condo/co-op properties.

    New Listings and Active Inventory
    While the low inventory level compared to buyer demand continues to be a key story in the DC Metro Area (March closed with 3.2 months supply of inventory), the 6,909 new listings added in March is only 2.2% lower than the 7,066 new listings added in March 2011 and is only 6.1% off the five-year March average.
    The number of new traditional listings, those not involving foreclosures or short sales, was actually 6.9% higher than last March, marking the third consecutive month with an annual increase in new traditional listings. The modest decrease in new listing activity compared to increased purchase activity leaves active inventory in much the same position as last month leading into the spring: DC Metro Area can be classified as a seller’s market. Barring unforeseen economic events, the 3.2 months of supply coupled with historically low interest rates and a relatively stable regional economy should indicate a healthy spring housing market.