The December inventory of homes for sale in Washington, D.C., was at the lowest level since 2005, Metropolitan Regional Information Systems reports.
According to MRIS, the capital's inventory fell to just 10,684 available listings in December, the lowest since August 2005. In addition, new listings added during the month decreased by 17.6 percent to 2,712 homes.
Meanwhile, the number of pending home sale contracts signed in Washington, D.C., rose by 22.1 percent, while 3,169 closed home sale transactions indicated an 8.3 percent increase from November.
Additionally, the report found that the city's foreclosure inventory decreased significantly in December on a year-over-year basis by 58.5 percent. Short sales made up 22.9 percent of all transactions by the end of 2011.
As the available home inventory in Washington, D.C., continues to thin, buying a home in the capital could net a healthy profit at resale due to a spike in competition among prospective buyers.