Happy June and welcome to summer! The weather is hot in the DC area, just like the local real estate market–so let’s jump right in, and we’ll show you what’s going on.
The number of active listings this month is trending upward across all home types, up around 10% compared to this time last month. But if we zoom out, this increase is even more pronounced for townhomes and condos, which are both up over 40% compared to this time last year. The number of homes on the market is picking up, which is welcome news for buyers who are looking for more options.
The number of new listings this month decreased slightly for single family homes, but we saw slight increases for townhomes and condos hitting the market, up around 10% compared to this time last year.
With more inventory finally coming into the market, the months of supply has been steadily increasing over the last few months. Right now, the months of supply for single family homes and townhomes are right around 1.6 months, while it is above 2 months for condos. We are still sitting firmly below the 3-month average that indicates a seller’s market.
Even with this increased supply, we continue to see unprecedented demand in the market. The average sales price rose again to historical highs for all home types again this month, most notably for single family homes, which on average, sold for over $998,000! This is over a 10% jump compared to this time last year.
Interest rates have also seen a slight decrease recently, substantially down from the yearly highs of nearly 8%.
The average sales price to original list price increased compared to last month, further demonstrating the strong demand for homes. Right now, homes are on average selling for nearly 2% above the asking price.
The number of closed sales is up across all home types compared to last month, which is typical and indicative of our seasonal transition into summer. However, the number of closed sales is actually down for townhomes and condos compared to last year. The demand for townhomes and condos is not yet continuing to grow at the rate of single family homes right now.
The days on the market remained at their remarkably low numbers for all home types this month. Single family homes and townhomes were typically only on the market for 6 days, while condos were typically on the market for 9 days.
Interestingly, 1 in 3 homes on the market in the US now are new construction homes. That is nearly twice the average we’ve seen from 1983 – 2019. Given the low supply of homes on the market, home builders have increased production to meet the demand. If you’re interested in new construction, let us know how we can help you navigate the process.
So what does it all mean?
If you are a buyer….
- The good news is the number of listings is increasing, providing more options. Housing affordability does remain a challenge, especially with current interest rates and historically high home prices but there are many people who have made a lot of money on real estate in the past 10 years that are now buying property with all cash.
- If you’re a first-time buyer or are looking to start building equity, it can feel daunting, but those cash buyers I just mentioned, didn’t start with cash, their first property was likely a small condo—which is not a bad idea right now. Condo prices haven’t increased as much as other home types, and they are a great place to build equity.
If you are a seller….
- Single-family homes are selling for nearly $1,000,000 on average. Demand for homes remains strong and you are likely selling for the highest price ever. This is a prime opportunity to maximize the value of your home or investment properties. Curious about what your home would sell for? We have the expertise to give you an accurate estimate and show you how we can sell your home for the most money.
Whether you’re downsizing, upsizing, or simply looking for a better fit, we are here to help you find the perfect home, at the right price, on your schedule. We love what we do, and we are happy to serve you and the people you care about! That’s it for June! Have a great summer and we’ll see you next month!