The DC condo/coop market in February continued the trend of being a strong sellers’ market. If you are on the fence about selling, you may want to reconsider. If you’re thinking about buying, be sure to work with an experienced agent who can help you navigate a competitive market.
The ups and downs of this chart demonstrates the seasonality of real estate throughout the year. The District has experienced a shortage of inventory for several years, and the pattern continued as two dozen fewer condos hit the market in February 2018 compared to February 2017.
You may not be familiar with the absorption rate, but it’s a pretty easy way to figure out if you’re operating in a sellers’ market or a buyers’ market. To calculate the absorption rate, divide the TOTAL ACTIVES by the TOTAL CONTRACTS. In February 2018, the DC condo/coop market’s absorption rate was 1.82. It was just 1.73 during the same time last year.
So what does this mean? If no new condos/coops hit the market after February 2018, all of the inventory would be sold in 1.82 months, or about three weeks into April 2018! A balanced market in DC, which means it’s neither a buyers’ nor sellers’ market, would have an absorption rate of four (4). An absorption rate of 1.82 means it’s a very strong sellers’ market.