The median price of a home in the District reached its highest point in history last month, according to the latest data from RealEstate Business Intelligence, a subsidiary of MRIS.
D.C.’s median sale price soared to $460,000 from $405,000 in February, an increase of 13.6 percent month over month. For the entire metro area, the growth was more modest. The median sale price for the region rose 8 percent, to $372,500 in March from $345,000 in February.
Falls Church boasted the largest median price in the area last month and the biggest percentage uptick year over year. The median sale price for homes in Falls Church climbed to $631,000 in March, a 37.7 percent increase. However, there were only 16 sales in Falls Church in March, which likely skewed the numbers…
While this is good news for sellers, it is not as good for buyers who are combatting not only rising home prices but also depleted inventory. The number of homes for sale in the region continues to hover at historic lows. The 6,289 active listings in March were down 4,200 from the same month a year ago and have dropped nearly 20,000 since their peak in the fall of 2007.
A couple of thoughts:
1. This seems to reinforce the figures that suggest the Washington D.C. area is doing quite well. Housing prices are up, the population is growing, the region now has some of the wealthiest counties in the United States…this is a contrast to the fate of many Rustbelt locations as well as some Sunbelt communities that are still recovering from the real estate bust of recent years.
2. This will feed into ongoing conversations about the expansion of the Washington D.C. region and sprawl. In recent decades, there have been a number of discussions and fights about sprawl in Maryland and Virginia and with these housing prices and housing demand, there will be plenty of people who want more new homes.