The state of the DC area real estate market – August 2019
Articles,  Blog

The state of the DC area real estate market – August 2019

Hi, I’m David Howell, CIO here at McEnearney
Associates are we’re continuing our conversation about absorption rates. Today we’re at 108 N. Payne Street in Alexandria,
listed by Jillian Hogan of our Old Town office. This is an incredible home, renovated from
top to bottom. It has 3,000 square feet, five bedrooms – each with its own private entrance
to a full bathroom, and an amazing kitchen. And as we’re headed into our region’s
beautiful fall weather, you’ll want to check out one of the most expansive, private roof-top
decks in the City. Click on the link below – and enjoy. As a reminder, the absorption rate is simply
the percentage of homes on the market that are going under contract in a given month.
And we characterize any market with an absorption rate of 60% or higher an “extreme” sellers’
market, where the negotiating leverage rests with the seller. Since we’re in Alexandria – clearly among
the hottest markets in the region – let’s start by looking at absorption rates here. We examined homes priced between $400,000
and $700,000 – the broad middle of the market where most transactions occur. In that price
range, every property type – detached, townhouse and condo – in the City of Alexandria has
a rate of 60% or higher. There is nowhere else in the region where
those conditions exist across all property types, but there are certainly plenty of other
hot pockets. Condos and townhomes in Shirlington in Arlington County are seeing rates around
70%. Again, using that same $400,000 – $700,000
price range, townhomes in Adams Morgan in DC and Springfield in Virginia are over 75%.
But at the top of the list in August is detached homes in Ashburn, Virginia – the absorption
rate there is 80%. Every area is different, and if you’d like
to know more about how things are in your neighborhood, we encourage you to call your
favorite McEnearney Associate. As always, we appreciate your watching – and
don’t forget to check out the link to this wonderful home! Take care.

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