Wednesday, April 11, 2007

MRIS March Housing Report: Large homes lead the market

MRIS released data earlier this week reporting March 2007 sales of existing homes and condos in the District listed or sold by real estate agents. Dollar volume and average/median prices rose while transaction volume was flat and average days on market increased to 84 days.

In looking at MRIS' number, I tried to figure what drove the increase in dollar volume and average/median prices given the flat growth in transaction volume.

  • Measured in number of units sold, condo sales increased 10.61% while single family homes decreased 9.12% YoY.
  • If one measures sales by dollar volume, both grew YoY: condos by 10.79%; homes, 17.66%.
  • Average sales prices for condos were up a scant 0.17% YoY while rising 29.47% for single family homes

So, fewer single family homes sold, but for more money.

I think the driver in raising March's dollar volume and, consequently, the month's higher average price is the segment MRIS labels "4 bedrooms detach/attach" (I prefer using "high end homes"). Their dollar volume increased 37.42% compared to -8.4% for homes with two or fewer bedrooms and 1.29% for homes with three bedrooms.

While the high end homes represented only 17.45% of units sold, they represented 35.16% of the total dollar volume, or $129MM. Of the 114 high end homes sold, 28 - or about a quarter - sold for more than $1MM and a quarter of those sold for more than $2.5MM. The average price of high end homes increased 47%; +15% for detached homes, +72.26% (!) for attached homes.

Detailed Data

Average Sales Price

Dollar Volume

Transaction Volume

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