The Wethman Group’s Real Estate News – August 2018

August 2018

Up, up, up! Prices and sales volume increased like the temperature in July for the local area housing market. Each year the DC housing market tends to peak in volume and price in June, with July starting to show a taper down to a lull in August and then a nice little pop again in September into October before quieting down significantly at the holidays for winter. Each month represents some seasonal differences (for more information on WHY, join our next first time home buyer webinar to learn about the factors that affect the real estate calendar year) which is why you’ll always see us comparing figures from the same month in the previous year.
Median home price reached the highest July price of the decade, up 3.4% from July last year, but down a seasonal 3.4% from the June all-time high the month before. As you may remember, we reported last month that sales volume (new pending sales and closed sales) was down in June from the previous year, which is somewhat out of sync with current trends. July saw the uptick in sales volume from last July we were expecting to see, with 3.2% more new pending sales in July this year over last July- again the highest July in over a decade.
If you’ve been following our newsletter for a while now, you may be able to guess what is at play AGAIN here: inventory! Our quick explanation (and what we are seeing play out with our clients) is that in June many buyers frustrated with the low inventory, just didn’t buy.
July inventory saw a few more new listings- up 1.6% over July 2017 (but down a seasonal 13% from June). However, active inventory for July (the properties remaining available for purchase) decreased again year-over-year for the 27th straight month, down 6.4% from July last year, meaning buyers scooped up all those new listings plus some. We are still 14% above the lowest inventory of the decade in 2013, but buyers are feeling the lack of choice and what we are seeing is some creative deal making and buyers revising what their “dream” property looks like rather than continuing to wait on inventory that just isn’t increasing.
We are helping buyers understand the current market, how to approach the search and prioritize trade-offs and walk away with the keys to their new home all the time! With interest rates holding steady, many of our buyers are gearing up for the little pop in inventory we usually see each September.
Thinking of selling? With near historically low inventory, it’s a great time. There is still time to get your house ready for the September shoulder season before buyers go into hibernation. Regardless of whether you are thinking of buying or selling, get in touch to start the conversation so we can come up with the best strategy and outline a potential timeline for you!
Save the Date: Pie Day- Tuesday, November 20th
Our annual pie day open house will take place the Tuesday before Thanksgiving at Katie and Kenny’s house (we know, we can’t believe it’s time to plan for fall already either!). Clients, save the date on your calendar to stop by for a bite and a drink and bring home an apple or pumpkin pie for your Thanksgiving celebration. It’s one of our favorite events each year, and we look forward to sharing it with you!
As always, if you or someone you know has a real estate need, please reach out. We are here to help!
The Wethman Group