DC Area Home Sales Fell 13% Following Shutdown

• December 10th 2013

by UrbanTurf Staff

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The effects of the government shutdown were significant, but likely temporary, for the DC area housing market.

Following seven consecutive months of double-digit annual gains, the number of closed sales in the area dropped 13.7 percent last month versus November 2012, according to a report released Tuesday by RealEstate Business Intelligence. Sales also fell 21.2 percent between October and November, about five times the ten-year average decline.

However, even though sales dropped off, contract activity appeared to pick right back up after the shutdown ended.

“The impact of the shutdown appears to have created only a temporary pause in sales growth, as new contract activity resumed positive trends in November,” said Jonathan Hill, President of RealEstate Business Intelligence. “There were 3,854 new contracts signed in November, the highest November total in seven years.”

In addition to contracts, two other housing metrics also increased in November: prices and inventory.

Despite the stall in sales, the median sales price for the region rose 8.1 percent compared to November 2012. In DC proper, prices rose 11.1 percent; the only jurisdiction in the region where prices fell was Arlington County.

Also, after a seemingly endless inventory drought, the housing supply looks to be increasing. Active listings in the region were up (5.7 percent) for the second consecutive month in November; townhouse listings rose 16.8 percent, and condo/co-op listings rose 14.5 percent.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/the_shutdown_effect_on_dcs_housing_market/7911.