Market Update Fleur Howgill September 19, 2023
Competition remains strong in the Washington, D.C. area housing market, according to the latest report from Bright MLS. In August, the median home price in the Washington, D.C. metro area was $585,000 which is down from the peak of $600,000 in June. However, prices are still rising year-over-year, with the August median home price up 5.4% compared to last year at this time.
Compared to a year ago, prices are rising fastest for townhomes and condominiums, which tend to be more affordable than single-family detached homes in the Washington area. But more buyers are being priced out of the market. New pending sales are significantly lower than they would be in a more typical housing market.
Even with fewer buyers in the market, low inventory continues to be a constraint. Active listings at the end of August were down 18.1% compared to a year ago. Available inventory is just half of what it was prior to the pandemic, with the supply of detached homes most constrained at only a third of pre-pandemic levels.
According to the Bright MLS T3 Home Demand Index (HDI), demand in the Washington, D.C. metro dropped from August to September. Although both months had slow market conditions, there was a 9-point drop to 75.
The Washington, D.C. metro had 4,583 closed sales in August 2023. This is down 13.9% overall from last year with detached homes seeing the largest year-over-year decrease in sales by 17.3%. Sales are down 27.7% from what they were at this time in 2019, a more regular year.
There were 5,965 listings in the Washington, D.C. metro for the month of August, which is an 18.1% decrease overall from this time last year. While active listings are up 4.1% overall from last month, inventory is only about half of what it was in 2019. This short supply will continue to put a strain on buyers.
Median Sales Price
The median sales price in the Washington, D.C. metro was $585,000 in August. This is up 5.4% from last year and is the third month in a row for year-over-year increases. Compared to last month, the median condo price rose fast, up 1.9% month-to-month.
Days on Market
The median days on market is up one day from July to eight. This is a sharp decrease of four days from this time last year, and condos have experienced its third decrease in a row year-over-year by five days this month. Median days on market has ticked up a little, however, through the summer months.
The area’s low inventory should keep prices strong because it doesn’t take many buyers to hold up a neighborhood. If you are selling, your home, townhouse or condo could get top dollar, if you have the right real estate agent guiding you.
If you are buying, keep in mind that as summer’s busy market slows down, buyers may see less competition and more inventory. According to Realtor.com, October 1-7 could be the best week to buy a home in 2023. Based on historical data, the analysis concludes that buyers can save more than $15,000 on median home prices this week and have 18.9% more new listings to peruse compared with the beginning of the year.
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