The District of Columbia and surrounding areas are poised for a rebound.
Over four months into the coronavirus (COVID-19) outbreak, the U.S. economy is trying to grapple with the effects of the pandemic. But certain industries have surprisingly held their own through this difficult time. In fact, many have even managed to find an opportunity of growth during the hardship.
The Washington D.C. housing market is one of those sectors.
According to reports, the District of Columbia and its surrounding areas showed unmistakable signs of rebound in June 2020. With higher home prices, increased pending sales contracts, and heightened demand, the housing sector has made a record-setting comeback.
After Months of Struggle, Washington D.C. is Back in Business
When COVID-19 made its presence known in the Washington D.C. market back in March, the region’s inventory and home prices plummeted in a noticeable way. While the effects were far and wide, it seems that things have now turned around for the better. In June, the median home price in Washington D.C. and surrounding areas was recorded to be $505,000, up by 3.1 percent from the same time last year.
But the increase in median prices is not the only thing to celebrate about this upwards tick. According to reports, the market also posted its highest pending sales in June as compared to the specific month’s performance in over 10 years. Since pending sales contracts take a few weeks to possibly turn into actual sales, we might see increased sales figures in the month of July.
The Effects Are Seen in All Surrounding Areas
The overall statistics relate to the District of Columbia, as well as regions from Maryland and Virginia. In Maryland, they include Montgomery County and Prince George’s County. In Virginia, the areas include Arlington County, Fairfax County, and the cities of Alexandria, Fairfax and Falls Church.
Out of these areas, all regions except for Prince George’s County showed an annual improvement in pending sales contracts. To be specific, there was a 4.7 percent increase in pending home sales across these areas. The region also showed that buyers are now quicker to close on homes that seem to match their preferences. As compared to last year, where listings spent a median of 10 days on the market, June listings spent nine days before reaching a contract.
Inventory is Still Tight Across These Regions
Even as median sales prices have picked up and buyer interest is strengthening, inventory still remains tight across these regions. According to statistics from the Washington D.C. housing market and its related regions, realtors recorded 8,504 homes on the market in June. This was about one-third lower than the figures posted at the same time last year.
But this is not necessarily a bad thing. Scarcity in housing units has driven up prices for sellers, which is also causing buyers to move towards putting their offers in a faster manner. A closer look at the statistics also shows that urban areas such as Arlington and Washington D.C. saw an increase in their inventory, indicating that select sellers are also being more open to testing the post-pandemic market.
These figures indicate that the Washington D.C. real estate is already back in action. If the market keeps moving in the same direction, we might see more improved statistics from the area in the near future.