DC housing inventory fell 5.1 percent year-over-year in June, while sales and prices moved in opposite directions. That’s according to new housing market data released this week from Redfin, which reported that inventory had hit the lowest level on record since the index began tracking in 2009.
DC saw 1,058 home sales in June, the most recorded in a single month since 2009 and a stunning 18.6 increase over last year. Meanwhile, home prices in the district dropped 2.3 percent in June from the previous year — the third time prices have fallen year-over-year in the past two years.
According to Redfin, one possible reason for the decline in sale price is the reversal of strong price growth in May. On a neighborhood level, Mount Pleasant, which posted double-digit growth in May, fell 8.1 percent in June from last year. Georgetown (-6.6 percent), Edgewood (-27.3 percent) and Adams Morgan (-10.7 percent) all recorded price drops in June from the previous month.
In a statement to Curbed, Redfin agent Dan Galloway pointed to a mismatch in the market when it came to home available for sale and home that are in high demand. “The sweet spot for buyers is between $350,000 and $800,000, but most of the homes being listed fall outside of that range. It’s frustrating for buyers competing in intense bidding wars for homes in that range and for sellers above and below it seeing their homes sit on the market,” he said.
On the national level, Redfin’s Housing Demand Index found that homebuyer demand fell 17 percent in June — this marked the fifth consecutive month of year-over-year declines.
Redfin customers requesting home tours grew 9.2 percent year-over-year in June, the smallest increase in tour activity seen since August 2014. This was, however, a 6 percent decrease from May. The number of Redfin customers writing offers decreased 6.6 percent year-over-year, and declined 5.6 percent from May.
Based on the decline in demand in June, Redfin cautions that sales are expected to slow down as we move into August.