Although the U.S. government may soon default on its debt obligations, home buyers in the Capital area are stepping up to the plate to buy homes.
Consumers signed more contracts to buy homes in June in the Washington, D.C., metropolitan area than in any June in six years, according to an index of pending transactions published by the local multiple listing service.
Pending home sales jumped nearly 30% year-over-year. But the big gain was largely attributable to the drop in contract signings in June 2010, which was two months after the federal home buyers tax credit ended. And the 5,124 contracts inked in the month were down 6.9% from the 5,506 deals signed in May.
Nevertheless, the Washington region is returning "to more normal seasonal patterns," the RPI Pending Home Sales Index found. RPI, which is published by the MRIS multiple listing service, is a two-year "moving window" on the local housing market. It covers the District of Columbia, Montgomery and Prince George's Counties in Maryland, and Alexandria City, Arlington County, Fairfax County, Fairfax City and Falls Church City in Virginia.
The index also found that the median sales price in the region hit its highest level in nearly three years, gaining 7.3% from May and 7.5% from last year, to $379,990. It is the fourth straight month the median sales price has increased.
At the same time, the number of active listings fell 5.3%, from 16,404 in June 2010 to 15,538 this June. Also, the ratio of new listings to active ones eased for the third consecutive month, and the number of days on the market fell to a 10-month low of 63 days.
