The following analysis of the Baltimore, MD and Washington, D.C. Metro Area housing markets has been prepared by RealEstate Business Intelligence (RBI) and GMU Center for Regional Analysis, and is based on May 2013 MRIS housing data. Click here to view the full releases.
Lowest median days-on-market since the peak of the housing boom
The housing market in the Washington DC Metro Area continues to post strong growth as we approach the summer season. Sales are at a seven-year high for May, and new contracts are back to peak housing boom levels. The median sale price for the region is rising and posted the highest May level on record. The median sale price is now over $30,000 higher than May 2012, and over $70,000 higher than May 2011. It appears that the rising price points could be enticing more sellers to enter the market, as new listings are up nearly 20 percent from this time last year, reflecting back-to-back months of double-digit growth for this indicator.
Despite the recent surge in new listings, the overall inventory of active listings continues to decline and is historically low, evidence that sales continue to outpace new listings. All property segments are showing signs of health, with condos leading in sales growth, townhomes leading in new contract growth, and single-family detached homes leading in median price growth. At nine days, the median-days-on-market is the lowest it’s been since the summer of 2005, and the average-sales-to-list price ratio now stands at 98.6, the highest of any month since October 2005. It is likely that the region will see somewhat slower sales as the summer progresses, which is typical of seasonal market patterns. If new listings continue to grow, this could help alleviate some of the inventory shortage, and take some pressure off prices.
Median days-on-market at a seven-year low
Market indicators continue to improve in the Baltimore Metro Region as we head into summer. Sales and new pending contracts increased at double-digit rates for the second month in a row, and the median sales price resumed growth after falling flat last month. The inventory of homes for sale remains at an 8-year May low across all property segments. Despite the continual inventory shortage, new listings are showing signs of life and are up nearly 20 percent from this time last year, reflecting back-to-back months of double-digit growth for this indicator.
The condo market continues to show the most improvement from last year, leading all property segments in sales growth and median sales price gains. Single-family homes edged out condos in new contract growth. All property segments posted double-digit growth in sales and new contracts for the second month in a row, evidence that activity in the buyer market has improved considerably from last year. This demand pressure is playing a role in the speed on market. The median-days-on market for the region is now 26 days, the lowest level of any month since June 2006.
About the RBI Metro Housing Market Update
The Housing Market Update provides unique insights into the state of the current housing market by measuring the number of new pending sales, trends by home characteristics, and key indicators through the most recent month compiled directly from Multiple Listing Service (MLS) data in RBI’s proprietary database. The bulk of this report’s content is readily available, down to the ZIP code level of granularity, via interactive charts and reports offered via rbiEXPERT, a premium subscription service offered to real estate professionals interested in growing their business with the help of industry-leading and user-friendly analytics.