Jonathan Miller, CEO of real estate appraisal and consulting firm Miller Samuel and maker of charts at RBI/MRIS, is also a Curbed contributor. Here is his Three Cents Worth column.
With the expiration of the debt ceiling looming, I thought I'd take a look at the current health of the Washington, DC metro housing market by examining its monthly absorption rate. In this chart, I defined absorption as the number of months to sell all active listings at the current pace of new contract signings. I like this metric because it looks at the net difference between supply and demand.
The 10-year average is 3.5 months and the market has ranged from 0.6 months during the boom to 11.1 months during the crunch. Currently we sit at 3 months, just slightly less than the 10-year average. I think it is safe to assume that plenty more (contract) negotiations will ensue over the summer.
· Washington DC Metro Area Monthly Absorption Rate [Miller Samuel]