Guest post and photo from Melinda Schnare
You’ve probably been a part of a housing market conversation where you’ve heard “inventory is low.” Here are the numbers for the supply of homes and the demand (buyers looking for homes), compared to last year.
Closed sales at the onset of summer (June) dipped below last year’s level by 6.9 percent. Active listings were far below last June’s active listing total of 2,760 (-9.5 percent).
Half of the homes sold in June were on the market 11 days or less. Many homes that are moving quickly have kitchens and baths updated, given a fresh coat of paint or floors refinished.
Things along those lines make a huge difference in the mind of the buyer. People are busy and less inclined to take on a project. Homes also sell more quickly when the neighbor’s house presents well.
When demand exceeds supply, prices go up. Every month this year, demand for homes has increased, compared to last year.
The Montgomery County median price of $477,750 in June was 8.6 percent higher than last June’s median, and represents the highest June level on record. Closed sales rose in the townhouse market segment while dipping in the detached and condo/co-op segments. I believe this is because boomers are downsizing.
Our nation’s capital is home to the highest share of millennials, comprising nearly 35 percent of the total workforce. And that’s good for our housing market, the way I see it, because it keeps us vibrant and moving forward as they grow and expand to the ’burbs to put down roots.
DATA SOURCE: Metropolitan Regional Information Systems, Inc.
Schnare is a real estate agent with RLAH Real Estate