WASHINGTON — There were 840 closed residential real estate sales in the District in August, or 40 or so closings per business day, historically a much lower number of monthly sales than in a normal D.C. housing market cycle.
Real estate companies continue to beat the “lack of inventory” drum for the slowdown in sales — if a potential buyer can’t find something he wants and can afford, he’s not buying — but, with prices at or near new highs, why is there a dearth of residential properties on the market, especially in the first-time buyer market?
Because no one wants to sell.
“Many current homeowners are not putting their homes on the market,” said Larry Foster, president of Long & Foster Real Estate.
“They may have refinanced at favorable interest rates that they don’t want to give up, and the lack of inventory might also be keeping some from moving up or downsizing.”
Long & Foster says there was a 1.6-month supply of homes on the market in the District in August, down 16 percent from a year earlier. When there is less than a six-month supply of available homes for sale, it is considered a seller’s market.
The number of active listings in the District in August was down 13 percent from a year ago.
What does sell, sells quickly and for full price or more.
Of the 15 neighborhoods in the District Long & Foster tracks, sales that closed in August closed at listing price, or just shy of it in all of them. In six neighborhoods, median selling prices were over list price.
“It’s a great time to sell, if you have somewhere to go,” Foster said. “At most price points, sellers have very little competition and a great deal of demand.”
Adams Morgan and U Street homes that sold last month were on the market an average of just 23 days. In the pricier Spring Valley and Wesley Heights neighborhoods, the number of units sold was up 49 percent from a year ago even with inventory down 16 percent.
While existing homes are the vast majority of D.C. sales, there is a fair share of brand-new inventory coming on the market in D.C. — mostly high-end condos — but even that goes fast.
Want a condo at 525 Water in the newly-christened District Wharf on the Southwest Waterfront? Act fast. Just three units left … at about $1.3 million.
The median selling price across the city in August was $548,000, led by Chevy Chase at $966,000.
