In the close-in Metro area, May 2011 marks the 14th consecutive month of price increases over the previous year. While “days on the market” and dollar volume of sales has fluctuated over the past year, the average price has shown unwavering improvement, all the more impressive since we are comparing it to last spring’s market which was inflated by the First Time Homebuyers Tax Credit.
The Case-Schiller report, which analyzes economic markets across the country, reported that the Greater Washington Metro area showed the highest price improvement over any other real estate market in the country. Urban studies theorist Richard Florida attributes this success story to the high creativity level of D.C. area population and the growth of hot neighborhoods, both in the city and in surrounding suburban areas, that both produces and attracts a smart, financially successful population. Last but not least, there is the undeniable strength of the area as home to the Federal government, which supplies jobs and relative job security.
*Statistics are taken from the Metropolitan Regional information System for three areas: Washington, D.C.; Montgomery County, Maryland; and Fairfax County, Arlington, Alexandria and Falls Church in Virginia.