Market Update: Capitol Hill – Jan 2015
It is kind of hard to believe that we are already 2 weeks into February! Where did January go? I thought we’d take a slightly broader look at real estate trends on Capitol Hill this month and a look at activity over the course of the past two years instead of the typical 12 month recap.
A couple of things stand out as you look at the report below. First, when compared to January 2013 and 2014, January 2015 had the least amount of homes for sale – and the lowest number of homes for sale in the past 24 months with the exception of November 2014 (it was a tie with a whopping 10 listings each month). The number of homes that closed was also the lowest it has been in 2 years but that can be attributed to the fact that there just wasn’t the inventory available to satiate buyer demand.
Next, take a look at the average price per square foot of the homes that sold and you’ll see that because there is such a limited amount of inventory, home owners are seeing the value of their properties increase. Homes that closed in January had an average price per square foot of $431. This is second only to October 2014 where the APPSF was $435. This same metric was $348 in January 2013 and $345 just one year ago – an increase of 24.7%.
As history indicates, the neighborhood typically sees a slight spike in inventory levels in January and February and then starts to decrease throughout the rest of the year. If you’ll recall with this report, anything under 3 months is considered a seller’s market while anything over 6 months is a buyer’s market. Even with this slight influx of supply, we’re only at 3.3 months of inventory which is barely considered to be neutral.
Last but not least, the average days on market decreased by a day to 23 from December, which is much lower than the Ave CDOM we’ve seen in the past (39 days in 2013 and 107 days in 2014). The sales price to original list price in January was 98%, making this 24 months of SP/Orig LP% at 92% or higher and 23 out of 24 months with ratios at or above 95% of the seller’s asking price. What does this all mean? It means that if you’re a seller on Capitol Hill and your pricing strategy in on point, you can anticipate your home selling within a month. If you would like us to help you identify your home’s current value and prepare your home for the market, please let us know. You can also check your home’s value using the widget at the top of this page.
Here’s a look at current homes for sale in Capitol Hill. If you have any interest in touring any of these properties, please don’t hesitate to contact us to arrange a showing.
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