The Washington D.C. area’s housing market experienced healthy growth in the first quarter, compared with the same period in 2012. The market continues to improve as solid demand bids up prices.

The market has not quite entered a full-fledged expansion phase as month-over-month indicators reflect the continuing uncertainty that is hindering the region’s economic growth. Because the full impact of sequestration has yet to be felt, the region’s housing market is likely to experience some volatility during the balance of 2013. Overall, however, the market is expanding and prices are likely to rise in the year ahead.