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If you’re looking to buy a home in the District right now, you may have a hard time finding what you’re looking for.
That’s because the months of supply of housing—a measure of how long it would take for buyers to scoop up for-sale homes given current transaction rates—reached a seven-year low last month. In July, the District had 1.4 months of supply on the market, according to a new analysis by real-estate firm Redfin, a level that hasn’t been seen since 2009. Six months of supply is considered balanced by real-estate standards.
Meanwhile, home sale prices continue to increase, with a median figure of $558,000 last month. This is an indication that demand remains strong: Per Redfin, the average home sold in 15 days and 37 percent of homes sold for more than their asking price.
In the past two years, months of supply spiked both Septembers, on either side of three months, in 2014 and 2015, respectively. Many homes in the District go on the market after Labor Day, so 2016 could see a similar uptick, according to Redfin. This may have the effect of relaxing purchase prices.
You can see neighborhood-by-neighborhood sale data courtesy of RedFin here.