Low inventory continues to push up median sales prices in all jurisdictions; Subtle signs of a changing inventory pattern begin to emerge with new listings

OVERVIEW

Price growth continues throughout the Washington DC Metro Region, driven by the low inventory of homes for sale. The low inventory is also pushing up the average sale-to-list price ratio, which is now at its highest level since the summer of 2006. While active listings remain at historic lows, new listings are beginning to show signs of what could be a changing pattern. New listings are up over 13 percent across all property segments in the region compared to last month, which is well above the 10-year average change for each segment.

Would-be home buyers didn’t find much to choose from in January. Only 6,049 homes were available in the DC area on January 31, compared to 10,095 one year prior. Baltimore-area inventory was down to 9,386 from 12,191 last January.

January’s inventory was the smallest the region has seen since 2005. Back then, before the housing market became troubled, there was even less inventory. Eager buyers snatched up homes as they came on the market. The inventory couldn’t grow. Oh how quickly things can change.

You can see in the chart below that the inventory of unsold homes in the DC area tripled from January 2005 to January 2006. It nearly doubled in the Baltimore area. Inventory continued to rise until 2008 because listings were increasing while sales were falling.