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Supply in the residential for-sale market is scarce

  • ​Supply in the Mid-Atlantic residential for-sale market hit its lowest level of the decade and ended 2017 with 2.36 months of supply on the market, down 14.5% from the previous year. The decline in supply fueled a jump in sales prices, which increased 4.1% in 2017 across the region.

  • Washington, DC: The city ended 2017 with 1.44 months of supply. Due to limited supply, pricing across all home types increased year-over-year, growing by 11.2%. Detached home pricing escalated most, jumping 18.1% from 2016 levels driven by strong activity in Brookland. On the condo side, supply ended the year at 1.52 months due to recent deliveries, mainly in the emerging markets of Shaw, Eckington, Bloomingdale and the Wharf with sales pricing reaching record highs in each of those markets. 

  • Northern Virginia: The market had the lowest supply within the region at 1.42 months, yet prices increased just 2.7% from last year. Northern Virginia’s townhome segment, particularly in Fairfax and Arlington counties, had less than a month of supply, ending 2017 at 0.86 months and as a result, pricing within that segment grew 3.9%. Supply was higher in detached homes, particularly in Loudoun and pricing remained relatively unchanged there, increasing 0.3%.  With defense spending increases expected to fuel demand within both the d,efense and intelligence government and contractor segments, activity and pricing within the townhome and moderately-priced detached home segments will remain most robust through the remainder of the administration.

  • Suburban Maryland: Population growth that lags the overall region, particularly among millennials, fueled higher supply levels here. Detached homes within the market contained the largest amount of supply, at 1.82 months. Homes priced above $800,000 sat on the market for an average of 80 days, 53.8% more than the regional time on the market. Meanwhile, the $800,000 price point and below was quite active, accounting for 92.1% of all sales, driven by activity in the Silver Spring, Upper Marlboro and Rockville markets.  

  • A stable local economy characterized by recent regional job growth outpacing historical job growth by 40% and diversification of the economy to additional private sector segments will translate into sustained demand ahead, particularly within population growth corridors such as the Northeast quadrant of Washington, DC; Falls Church and Arlington in Northern Virginia and the Kensington and Silver Spring area of Suburban Maryland.​

Source: JLL Research, RBI​

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