WHY THE DC REAL ESTATE MARKET ISN'T TAKING A DIVE
DOWN, BUT NOT OUT
At a time when DC real estate is typically racking up significant price increases with each bidding war. and market activity is at its annual peak, the outlook for late spring is about as sunny as today’s weather.
Last week, mortgage interest rates rose to near 7% again, putting the kibosh on home purchases for many buyers.
But prices and listings are still inching up overall.
Some sellers-–knowing prices are softening, increasing less than usual and even falling for some neighborhoods and home types–-are deciding to hold back until the market improves. This is ontributing to even lower inventory than ususal, vexing willing and able buyers, and putting upward pressure on prices under conditions that would otherwise assert downward pressure on values.
It seems, however, that few are happy. Buyers want more choices as the cost of owning goes up, and sellers are missing the bidding wars and big profit gains they’ve come to expect over the past 8-9 years.
MAY 2023
In the District of Columbia:
- All Home Types: Median May Sold Price was $659,900., down 2.5% from April 2023, but up 1.5% from May of 2022;
- May Average Days On Market (DOM) was 30 days, up 1 day from April, and 7 days from May 2022;
- The May Average Sold to List Price Ratio was 98.7%, slightly higher than April’s 98.3%;
- The District saw 1,811 Active listings in May, higher than the 5 year average.
APRIL 2023
In the District of Columbia:
- All Home Types: Median April Sold Price was $676,500. up 5.6% from March 2023, but down 3.2% from April 2022;
- April Average Days On Market (DOM) was 29 days, up 3 days from the 5 year average of 26 days;
- The April Average Sold to List Price Ratio was 98.3%, an increase of 1.0% from March 2023;
- The District saw 1,762 Active listings in April, higher than the 5 year avg of 1.573,, and 982 New listings, 768 new pending sales, plus 610 closed transactions (on-market listings).