January 2014 Market Report: A Bigger Inventory equals More Settlements

2013 ended with higher home prices in the District of Columbia and Montgomery County, with homes spending less days on the market than in 2012. Settlements increased for condos and single-family homes in both jurisdictions, but inventory was higher compared to December 2012

Washington D.C.

The average number of days on the market was down 37.9% compared to December 2012. The median price for condos was up 7.5% and single family homes saw a 13.2% increase. Condo and single family inventory increased in December with a 11.9% increase for condos and a 1.5% increase for single family homes. Condo contracts dropped slightly, 2.7%, but condo settlement activity 23.3% increase over December 2012. Single family contracts also dropped slightly, 1.5%, but single family settlements rose 16.8% over December 2012.

Montgomery County

The average number of days on the market was down 13.1% from December 2012. Median condo prices saw a 5.7%, with the price of single-family homes increasing by 8.2%. The amount of available inventory increased in December with a 21.1% increase for condos and a 8.1% increase for single-family homes compared to December 2012. Condo contracts decreased 1.9% in December but the number of single-family contracts saw a slight increase of 0.8%. Condo settlements increased 13.6% and single-family settlements increased by 8.4% compared to December 2012. 

District of Columbia	December 2013	December 2012	Change
Average Days on Market: Condo & Single-Family Homes	36	58	-37.93
Condo Median Price	$408,500	$380,000	7.5%
Condo Total Active Listings	554	495	+11.9%
New Contracts This Month	216	222	-2.7%
Condo Settlements this Month	318	258	23.3
Condo Absorption Rate (Total Active Listings/New Contracts)	2.56	2.22	15.3%
Single Family Median Price	$599,900	$530,000	13.3%
Single Family Total Active Listings	534	526	-1.5%
New Single-Family Contracts This Month	257	261	-1.5%
Single Family Settlements This Month	355	304	16.8%
Single Family Absorption Rate (Total Active Contracts/ New Contracts)	2.08	2.02	3.0%

Montgomery County	December 2013	December 2012	Change
Average Days on Market: Condo & Single-Family Homes	53	61	-13.11
Condo Median Price	$220,900	$208,225	5.7
Condo Total Active Listings	419	346	+21.1%
New Condo Contracts This Month	159	162	1.9%
Condo Settlements this Month	209	184	13.6%
Condo Absorption Rate (Total Active Listings/New Contracts)	2.64	2.14	23.4%
Single Family Median Price	$460,000	$425,000	8.2%
Single Family Total Active Listings	1330	1230	+8.1%
New Single-Family Contracts This Month	483	479	0.8%
Single Family Settlements This Month	622	574	8.4%
Single Family Absorption Rate (Total Active Contracts/ New Contracts)	2.75	2.57	7.0%

Source: Greater Capitol Area Association of REALTORS

Want a team of Realtors that keep up with the latest market information about the D.C. and Montgomery County housing market? Contact Mynor and Associates to help you find your dream home!

Mynor Herrera

Keller Williams Capitol Properties

License 611201301-473-1622

For Sale by Agent/Broker

Tips for First-time Home Buyers

You’ve finally decided to make one of the biggest decisions of your life: buy your first home. Then, a million of questions go flying right at you. What’s the first step? You probably have no idea how the overall purchasing process works. And you’ll probably be very surprised to learn how much work it really is just to buy a home. To get you started in the right direction, and this is just a start, here are a few tips that you should consider.

Get lender-qualified and find a good real estate agent

First things first, you have to get qualified by a lender. Once you’re qualified, your price range estimate at hand, you’ll be able to spend your time shopping in neighborhoods that you can afford. NOTE: Just because the bank says you can qualify for a certain amount, that doesn’t mean you should spend that amount. Make sure you can actually afford the monthly payment, along with all your other bills.

Make sure you plan to be a long-term owner

Once you know your price range and have looked at some properties, it’s time to make sure that you believe you can find a property that you will own for a minimum of five years. If your price range doesn’t match where you want to live, you’d be better off staying a renter and saving some additional money until you can afford where you want to live. This is because an owner really doesn’t earn any equity, on average, in a property for at least five years. 

Educate yourself

Buying property is probably the most complex, riskiest and expensive thing you will ever do. Do your homework: Talk to real estate owners, go to first-time buyer seminars, check out online material and read some books to learn what to avoid in the buying process. The more you educate yourself, the better the chances that when things go wrong -- and they will go wrong -- they will only be minor issues, not major headaches.

Find a nice affordable property

The real gems in real estate are the nice, decent shape, moderately priced, boring houses, town homes and condominiums that are within your budget. Most buyers stretch to purchase the most expensive property they can afford. What if you lose your job? How about saving some of your money for retirement? You want your home to be an asset you can afford, not a liability that leaves you with no additional funds over the cost of homeownership. Also, skip the fixers, prize properties or anything that sounds too good to be true: Those always end up having issues, and owners realize, after the fact, that the deal they thought they were getting really was just too good to be true!

Take your time

Realistically it should take you six months or longer to buy a nice quality property that will add to your long-term wealth. Make sure you have a full understanding of what the marketplace has to offer in your price range and that you know what you’re doing.

Source: foxnews.com

Do you want to work with a Realtor who never fails to provide his clients about pertinent Real Estate information, market trends, tips and what-to-dos?  Call me, Mynor Herrera, today for expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.