The inventory shortage continues in the Washington DC Metro Area housing market as we begin 2013. Active listings for all property segments remain low, and townhomes have the lowest proportion of listings on record. The short supply is having an impact on median sales prices, which experienced double-digit growth for the 4th consecutive month. Townhomes led in median price growth, up 13.3 percent, a $40,000 gain in value. Demand remains strong in the market as evidenced by a spike in new contract activity in January. The condo market had the largest gains in new pending contracts, up 10.3 percent. Despite the ripe conditions, sellers are still not responding. New listings for January increased from December, but this is typical for the season. The total number of new listings is the lowest for any January in over 15 years, a clear indication that sellers remain cautious. There are a wide range of factors that could be keeping sellers from listing their properties. Many could not have enough equity at current prices to “trade up” into a larger unit. Others may have trouble finding a unit to begin with because the inventory is so low. Economic uncertainty also remains a key issue on the table for many.