The Washington, D.C., housing inventory continued to thin in January as a greater number of prospective buyers capitalized on affordable interest rates to complete transactions.
According to Metropolitan Regional Information Systems, the capital's housing inventory in January was 25 percent lower than the previous year, as there was a 4.6 percent surge in contract signings to close real estate deals.
Meanwhile, the report noted that the decline in the city's inventory could add upward pressure on area home prices for years to come, which could make buying a home for sale in Washington, D.C., a profitable investment.
In January, there were 10,095 active listings inside the Beltway, accounting for a three-month supply – marking a seven-year low. In January of 2011, there were an estimated 13,500 active listings.
Additionally, the report showed that the average price of a home in the area edged 1.4 percent higher to $396,823. The strengthening marketplace is believed to be due to a 67.2 percent drop in distressed properties in January.
