The trend in the D.C. metro area real estate market from the peak of the boom in 2005 to this past year of 2016, shows a pattern of behavior that was simply never anticipated. When the market crashed in 2007 with an overload of foreclosures that occurred in 2008 and 2009, the pundits forecasted a glut of housing on the market that would go on maybe for decades and drive prices down nationwide. Instead, the opposite has happened; there is a shortage of houses for sale throughout the country with prices nearly all the way back to what they were in 2005 and in some cases higher.
Here’s the scoop on our close-in Metro marketplace. The biggest decrease in sales from 2005 to 2016 occurred in Fairfax County, which saw a 31.4 percent decrease in dollar volume of sales. Next in line, Montgomery County showed a 24 percent decrease in sales. These two areas also had less than a one percent increase in average price since 2005. On the other hand, the District of Columbia showed a 14.5 percent increase in dollar volume of sales and a 22.3 percent increase in price.
This is a trend we have been witnessing since the beginning of the recovery: the city is hot and the suburbs are not.
Supply is scarce everywhere, but especially in the city, where there appears to be an endless supply of eager buyers for the short supply of properties that trickle onto the market each month. Will this trend continue? The desire of so many people to live in the District, with all its amenities — proximity to Metro, entertainment, cultural attractions, and more – the continuing low inventory will very likely keep this trend going for at least the next couple of years.
(Statistics are taken from the Metropolitan Regional Information System for the District of Columbia, Montgomery County, Maryland and Fairfax County, Virginia.)
Donna Evers is the owner and broker of the largest woman-owned and run real estate firm in the Washington Metro area, Evers & Co. Real Estate Inc. Reach her at firstname.lastname@example.org.