The state of the D.C. area real estate market

In this video, we’re continuing our conversation about absorption rates.

But first, I’d like to thank Emily Gordon and Phillip Allen of our DC offices for letting us shoot this video in their incredible new listing at 3039 16th Street, NW in Columbia Heights.  Unique is a word that’s overused – but this 2 level, 2 bedroom condo really is unique.  20-foot ceilings, 18-foot windows, magnificent views, incredible smart home features and a private elevator right to the unit.  Take a look at the info below, click on the link and enjoy!

Evaluating the impact of absorption rates is really a matter of leverage.  The higher the rate, the more bargaining power the seller has. Let’s take a look at the conditions right here in Columbia Heights.  Over the last several months, the absorption rate for condos has been right around 35%. That’s a seller’s market, and the results show that.  Since the first of the year, condos here have sold for an average of 99.5% of original list price in an average of 34 days. Good stuff!

On the other side of the river in the Shirlington area of Arlington County, condos are less expensive and there haven’t been many on the market. Absorption rates have been running between 70% and 80% – what we call an extreme seller’s market.  And the results are pretty staggering. Properties have sold for an average of 2% above original list price in an average of just 11 days.

Two really good markets, appealing to two different kinds of buyers. As we have noted before, the takeaway is simply this: every market is different and if you’d like to know more about how things are in your neighborhood, we encourage you to call your favorite McEnearney Associate and we’ll give you an in-depth analysis.

As always, we appreciate your checking in with us – and don’t forget to check out the link to this wonderful condo!

David Howell, “The state of the D.C. area real estate market”

State of the D.C. area real estate market: Where did all the listings go?

We’re now firmly in the spring market, and there’s one question that has emerged that’s pretty hard to avoid: What happened to listing inventory in the City of Alexandria and in Arlington County?

At the end of March, most of the metro area had roughly the same number of listings on the market as this time last year.  But in Arlington County, inventory is down 40%, and in the City of Alexandria, there were exactly half as many homes on the market.

Half.

Where did the listings go?  Contract activity is a little higher than last year in both of these areas. But it isn’t contract activity that accounts for the big drop in inventory.

There has been a significant reduction in the number of new listings coming on the market; it simply isn’t being replaced at the same levels we have historically seen.  The Amazon HQ2 announcement may have something (or a lot!) to do with that, as some would-be sellers may be holding off with the expectation of higher prices down the road.

The lack of inventory has pushed absorption rates into the “extreme sellers’ market” for most price ranges in Arlington and Alexandria.   Although prices are higher than before the HQ2 news, that’s generally true throughout the region. We haven’t yet seen the big spike in prices that ordinarily accompanies very low supply. We’ll be keeping a close eye on this in the months ahead.

Every market is different and if you’d like to know more about how things are in your neighborhood, we encourage you to call your favorite McEnearney Associate and we’ll give you an in-depth analysis.

David Howell, “State of the D.C. area real estate market: Where did all the listings go?”

Absorption Rates (August 2018): What’s hot, what’s not

The metro D.C. market has softened a bit, and we think ultimately 2018 is going to look a lot like 2017. But there are plenty of hot spots where sellers have lots of leverage.

Continue reading “Absorption Rates (August 2018): What’s hot, what’s not”