In December 2010, the median home price in Washington, DC came in at $399,000. Last month, the median price in the city shot up to $635,000, setting an all-time record and illustrating the magnitude of home appreciation in the city over the last decade. The previous record price of $620,000 was set just back in June.
DC was not the only area to see prices shoot up last month. The December Bright MLS report stated that home prices rose in every local jurisdiction except for Fairfax City, with Arlington, Montgomery County and Prince George’s County seeing significant gains. The median price for the DC area also set a new December record at $459,950, a 3.4% increase over December 2018.
Despite rising prices, home sales remained robust in DC, Montgomery County and Prince George’s County, while dropping in several Northern Virginia jurisdictions. However, pending sales (homes that went under contract) in December dropped almost across the board, so January will likely see a drop in closed sales.
What has been true for years in the DC region, remained true in December: there is very little to choose from on the market right now. The active supply of homes for sale dropped across the board in the DC area, as illustrated in the chart below.
“Active inventories of 5,489 were down a significant 18% compared to last year and were down 22.6% from last month,” the Bright MLS report stated. “Inventories were at the lowest monthly level of the decade, and this marks the seventh consecutive month of double-digit declines in inventory levels.”