Data supports continued confidence in the real estate market, as well as the overall economy.
Washington D.C. continues to provide investors with a real estate market filled with increased opportunity. After decades of decline, our population continues to grow, while maintaining some of the highest levels of income and education in the country. And our housing market has continued to exhibit the rock-solid fundamentals of decreasing inventory and increasing demand, leading to continued, healthy, year-over-year increases in housing prices.
The D.C. housing market continued to heat up in 2017. Compared to December 2016, D.C. closed out 2017 with greater demand (more sales), decreased supply (fewer listings) and a median sales price that increased 2.7% year-over-year. 2017 saw additional encouraging signs within D.C.’s housing market.
- One in three homes in DC sold above asking price
- 2,279 multi-million dollar homes sales
- D.C. ranked #2 among East Coast cities with homes sales over $1 million
- 71% increase in number of homes that sold over $2.5 million
D.C.’s increasingly hot housing market performance has led some to question whether or not we are in a housing bubble, similar to what we saw in 2008, whether that homes in D.C. are overvalued. This is unlikely. As the above data demonstrate, D.C.’s increasing prices are driven by the fundamentals of increasing demand and decreasing supply. D.C.’s inventory levels have declined for 20 consecutive months, and our region’s total active listings in December 2017 (6,466 regional active listings) are a fraction of their levels in December 2008 (regional active listings 21,080).
Data Source: Evergreen Private Finance