Washington DC median real estate prices increased by a whopping 18.45% as reported by AOL Real Estate for the 12-month period ending February 2012.  This 18.45% increase ranked DC fifth nationally for median price increases for this timeframe.

A shortage of inventory has significantly impacted the market in 2011, with inventory levels throughout the year averaging between three and four months supply.  Buyers are often confronted with multiple offer scenarios in the popular urban DC neighborhoods.  With several of the planned new condo developments now coming to market as rentals, it is likely that inventory shortages will continue in 2012 for the condo sector.

If you are considering a purchase of a home or condo in the District, here is a resource to evaluate neighborhoods and developments in the District.

According to data compiled by McGraw-Hill Construction, the Washington, DC MSA ranked fourth nationally for new construction starts in 2011.  At $8.1B, DC trailed only New York City, Dallas and Houston in new construction starts.  The study encompassed both residential and commercial construction, but does not include public works projects like the Metro expansion to Dulles.

In the residential sector, new construction projects remain highly sought after by DC property shoppers. Most of the projects that are delivering this year are smaller rehabs of existing buildings, rather than new buildings.  Here is a resource to view DC new construction condo listings.

In a study recently released by Atlas Van Lines, Washington, DC led the nation for inbound migration for the fourth consecutive year. Allied's study based on data from over 80,000 Interstate moves detailed that almost two times as many people moved into the District as left.  These inbound migration numbers reinforce the sentiment from our team here in the trenches where we hear from people moving to DC virtually every day.

It is no surprise that so many people are looking to move here as Washington, DC has many positives as a place to live.  Topping the list is one of the strongest and most robust job markets in the nation.  Over the past year, DC has been recognized with several other top national rankings including:

• Top performing real estate market
• Top city for families
• 2nd healthiest city
• 5th best city for young people
• Smallest homes in nation

The biggest adjustment for those moving to DC is the cost of housing in our city. Homes and condos are very expensive compared to many other parts of the country. Here is a resource to help acquaint you with the various DC neighborhoods and currently available real estate options.

In a recent study conducted by Realtor.com, Washington, DC ranked first in the nation for having the smallest size homes.  The study calculated the median square footage of all the homes listed for sale in September, 2011.

DC homes weighed in with a median home size of 1,000 sq. ft. and a median lot size of 2,375 sq. ft. Rounding out the top five smallest median home sizes were Hawaii, Michigan, Iowa and Ohio.  The DC top ranking makes sense as this study utilized state data rather than just urban cities or Metropolitan Statistical Areas (MSAs).

Many of the smaller condos in the District are located in more venerable residential neighborhoods like Foggy Bottom and Dupont Circle with larger units more readily available in neighborhoods like Logan Circle and U Street that have had a significant number of new developments built in the last ten years.

MapQuest has developed a new methodology for ranking neighborhoods called a Vibe Score. A Vibe Score is a composite of the following six criteria: walkability, popularity, going out, edginess, burbiness and residentiality. Vibe uses a patented algorithm that utilizes billions of search and social input data points to create real-time rankings.

Georgetown garnered the top ranking DC Vibe Score with a 10, closely followed by Capitol Hill with a 9.8 and Downtown with a 9.6. These are all very popular destination neighborhoods with great walkability and a significant number of venues to attract lots of visitors. It is interesting that two of the neighborhoods that I expected to high Vibe Scores, Logan Circle and Columbia Heights didn't crack the top ten in the District.

The whole concept of a Vibe Score is most fascinating as it compiling real-time social networking data points to calculate its rankings. I think it is safe to say that applications like this are accelerating the concept of crowd sourcing to mainstream America.

AOL Real Estate has ranked DC as the fifth best city in the country for young people. DC trailed Cincinnati, Seattle, Baton Rouge and Minneapolis. This 5th place ranking is a couple of positions lower than CNN's 2nd place ranking last year.

The criteria used by AOL Real Estate in establishing these rankings includes: starting salaries for college graduates; cost of living; and percentage of residents in their 20s. DC had higher than average cost of living scores but excelled in starting salaries that are 17% higher than national averages and low unemployment rates.

District neighborhoods popular with young people where more affordable housing option are available include Columbia Heights, Shaw and the H Street Corridor.

DC continues to rack up the high rankings for various demographics including being ranked by Forbes as America's 2nd healthiest city.

The sidewalks of the District during the morning and evening commutes offer a snapshot of just how this ranking was achieved……everyone seems to be walking to work these days.  Popular DC neighborhoods like the West End, Dupont Circle and Logan Circle all offer easy walking access to the Downtown office buildings.

Congratulations to all the residents of the DC on your healthy lifestyle!

photo courtesey of flickr user Pak Gwei

The accolades continue to pour in for DC as Parenting Magazine named the District the top city in the country to live in and raise a family.  Parenting used a set of 84 categories including great schools, affordable homes, low crime rates, jobs and parklands to calculate their rankings.

This DC top ranking for families follows several other recent chart topping recognitions including:

• #1 Performing Real Estate Market
• #1 Smartest City
• #2 City For Young People
• #1 For Inbound Migration
• #2 City for Working Moms

DC ranks high for its vast array of museums and multitude of parks and bike trails.  Traffic congestion and high housing prices are two of the top challenges facing our region.  With long commutes and escalating suburban home prices,  many families are forgoing a move to the suburbs and choosing a DC rowhouse to raise their family.

DC was rated as the top performing real estate market in the nation by Clear Capitol In its June 2011 Home Data Index (HDI) Market Report. The Clear Capitol HDI report compares how local markets perform compared to national averages.

The HDI report detailed that the DC (Washington, DC - Arlington, VA - Alexandria, VA) real estate market topped the nation with a quarter-to-quarter price increase of 4.5%. The year-to-year price increase for the DC market was also tops in the nation at 4.9%.

With a strong job market and the lowest unemployment rates in the nation, the DC economy is firing on all cylinders. Residents are feeling confident about the future and looking to purchase now before prices increase even further. If you are condsidering a buying in the District, here is a resource to facilitate your search for DC real estate.

A recent article in Realtor Magazine about the real estate preferences for Generation Y buyers detailed this demographic groupings wants and desires.   This sector, who were born in the late 1970s through the early 2000s, has a strong preference for an urban living experience.  Walkability is a key desire for this group as is living in the now rather than taking a long-term view of its housing needs.

DC's Logan and Dupont neighborhoods are tailor-made for Generation Y buyers.  With WalkScores in the mid and high nineties, walkability rules the day in this part of DC.  Life without a car is a reality for many of the residents in these two neighborhoods. Many residents are able to walk to work Downtown from their Logan or Dupont home and commute via Metro to more distant locations.

Basic daily necessities like groceries, dry cleaning, banking and health clubs are a short stroll in both Logan and Dupont.  After work, Generation Y also like to play and these neighborhoods are stocked with restaurants and clubs.  They are also situated near to Gen Y hotspots like U Street and the Penn Quarter.

If you are a member of the Gen Y demographic and are looking for a place in the District, here are resources learn about the Logan Circle and Dupont Circle real estate markets.