This summer the market has been pretty hot, but we’re starting to see signs of things cooling off for fall.
Very few high-quality, well-priced new listings are coming onto the market. When one finally does, it’s the same story every time; the buyers that are out there all descend at once and end up bidding against each other.
To take a deeper look at what’s going on, we decided to mix things up a bit with a sneak peek at the Redfin Heat Index (Beta)*.
For starters, we developed the table at right, which includes our heat ranking for every market where Redfin collects real-time sales data.
Of course, the fact that DC and the surrounding Beltway are red-hot when taken as a whole isn’t a surprise to anyone. You probably want to know what’s going on at the neighborhood level, right?
That’s why we crunched the numbers for the entire DC area and produced an interactive Redfin Heat Index map, broken down by zip code. Just click the image below to play with the map on our blog.
Washington DC Area Heat Map by Zip Code
(Note: the map above is broken in Internet Explorer 9 and Google is working on the issue. In the mean time, please use Mozilla Firefox or Google Chrome to view the map.)
Prices are still falling across many areas of the DC area, and although buyers are scarce, listings are even more rare, which is why you’re seeing some warmth in the map above.
Redfin Agents Give Their Take on the Market
The Beltway is super hot, with flames of activity spreading north and south into Maryland and Virginia. Not surprisingly, the downtown DC area has seen price increases and tough competition. But are things starting to cool down? DC Redfin agent Tom Lewis gives his take: “The market has been relatively busy this summer, but as we move into August, things are appearing to taper off ever so slightly.”
“My listing client is giving it one more month,” says East Montgomery Redfin agent September Lundeen. “If it doesn’t sell, he’s going to rent it out. He’s been on the market since October 2010, steadily decreasing his price.”
“Despite incredibly low interest rates, properties appear to be sitting a bit longer,” says Montgomery Redfin coordinator Phil Gvinter. “One looming issue is the pending reduction of conforming loan limits from $729,750 down to $650,000, which may have a material impact on large parts of the market.”
That’s it for this month’s Insider Report. If you miss the trusty old data tables, don’t fret! You can still download our comprehensive spreadsheet and dig into the data for yourself! Inside you’ll find county, city, and neighborhood information galore. You can also liven up the place by posting a comment on the online version of this report on our blog.
Taylor Connolly, Maryland Area Manager
- MOS = Months of Supply: End of Month Inventory / Closed Sales in the Month
- $YOY = Year-over-year change in the median price per square foot.
- Heat Index = ((MOS – 6.0) * -7) + (($YOY – 5%) * 2) + 75