Fall is finally upon us and the third quarter of 2017 has come and gone. It was reported that home sales prices continue to skyrocket in Northern Virginia. Home price appreciation is widespread across the nation, but particularly pervasive in NOVA. A wide variation exist in home sale price by location and housing type within the region.
An Overview of the DC Metro Area Housing Market
According to MRIS Report, the Washington D.C. Metro median sales price of $405,000 was up 1.3% or $5,100 compared to last year but was down 5.8% or $25,000 compared to last month. This is the highest September price of the decade. New listings of 6,972 were up 2.8% as compared to last year and were up 18.3% from last month and sales volume across the DC Metro area was nearly $2 billion, down 2.2% from last year.
Single- family home sale prices have grown the fastest as price growth in the single-family home sector has driven the overall rise in regional median home sale values, while condo prices remain relatively stable. Single-family detached and attached homes have each appreciated in price nearly 30 percent, at 2.8 percent annually, since their low in 2009. This is compared to the condo sector which grew 18 percent, at 1.8 percent annually in median sale price over the same period.
Condo values have stalled significantly in the past four years.
An Overview of the Baltimore Metro Area Housing Market
As cited in MRIS Report, the Baltimore Metro area median sales price of $253,000 was down 0.3% or $670 from last year, down 4.5% or $12,000 compared to last month. The sales volume across the area was over $917 million, up 0.2% from last year but the closed sales of 3,127 were down 2.4% compared to last year, and down 17.8% from last month. The average percentage of original list price received at sale in September was 95.5%, up from last year’s 94.9%.
There was an increase in the number of units sold in Q3 of 2017, with 3,189 sold in the Baltimore County real estate market. There were 3,869 homes newly listed for sale, which is less than new homes listed in Q3 of 2016.
Do Housing Prices Continue to Rise?
Reports says to expect local home prices to continue rising throughout the rest of 2017 and likely into 2018. The tight supply of existing homes on the market continues to constrain sales, while low mortgage rates and job growth help fuel demand. This pushes up prices while relief from new home construction is lagging and is only at half of its pre-recession peak. At the same time, home prices are rising faster than income and wage growth.
This Housing Market Update provides few 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 months compiled from different reports.
If you are ready to take the next step towards purchasing your new home and for all of your other real estate needs, contact me today at (703) 228-9788. Whether you are buying or selling, I will be here to help you every step of the way.