A new report says that the new homes market in Washington, D.C. has maintained a steady pace of improvement in recent months, as the region has quickly recovered from the drop-off from the homebuyer tax credits.
According to a recent report from Metrostudy, the local real estate market saw a significant rebound in traffic and new home contracts over the last few months, as those levels remained even with last year's figures following slower-than-usual summer months.
"Other markets across the country have two or three times the inventory which we have. In those areas, prices are falling and builders are struggling to stay afloat. Locally we have limited exposure to overbuilding, and prices are beginning to increase in some submarkets," said Kenneth Wenhold, regional director of Metrostudy's Mid-Atlantic division.
Researchers added that the inventory is also skewed by a number of properties in failed condominium complexes. Excluding those properties, there is only a 5.7-month supply of new homes for sale in Washington, D.C.
Overall, D.C. has seen a strong increase in home prices in recent months. The recent Case-Shiller home price index found that home prices in the area in August were 4.8 percent above levels from August 2009.
