Market Update Fleur Howgill October 17, 2023
A low number of new and active listings is still a major obstacle to buying in the Washington, D.C. metro area as of September, and closed sales are slowing while prices continue to inch up, according to the latest report from Bright MLS.
In September, the median home price in the Washington, D.C. metro area was $550,000, a 3.4% increase from this time last year and the fourth month in a row with a year-over-year increase. From last month, however, the median sales price dropped 6.0%, with detached homes having the sharpest month-to-month decrease (-7.3%).
The number of active listings is still very low. The Washington metro had only 6,646 active listings at the end of September 2023. This was a decrease of 18.6% from last year and roughly half (54%) of the homes on the market in September 2019.
According to the Bright MLS T3 Home Demand Index (HDI), demand in the Washington metro is labeled as Limited in October 2023. The HDI of 48 is much lower than last month’s 77, still Slow demand. The sharp decline in the HDI signals cooler market conditions ahead. Market conditions in the Washington metro were Moderate (106) in October 2022.
There were 3,723 closed sales in September in the Washington, D.C. metro. Sales are down 19.0% from last year at this time and fell sharply (-18.8%) from a month ago. The slowdown in activity reflects higher mortgage rates, low supply, and a typical fall season cooldown.
There were 6,646 active listings at the end of September, which is 18.6% lower than levels last year at this time. There was an 11.4% jump in inventory from last month, but levels are still only 54% of what they were at the end of September 2019.
Median Sales Price
The median sale price in DC landed at $550,000 for the month of September, a 3.4% increase from this time last year and the fourth month in a row with a year-over-year increase. From last month, however, the median sales price dropped 6.0%, with detached homes having the sharpest month-to-month decrease (-7.3%).
Days on Market
The median days on market is down sharply from last year at this time, declining by six days. Compared to last month, the median days on market ticked up one day. Since June, days on market has been steadily slowing, most likely an indicator of the seasonal, fall cooldown.
One other interesting note in this month’s market report, while transactions have been lower overall in the Washington metro in 2023, Alexandria City has had higher new pending sales (+11.3%) and closed sales (+5.4%) compared to last year.
Looking ahead a bit, the Bright MLS experts say it seems more likely that mortgage rates may reach 8% rather than return to 6% in 2023. Elevated mortgage rates will limit future new listings as potential sellers cling to their homes and locked-in rates that are half of what we are seeing today.
If you are ready to take advantage of this historically low inventory and want to sell your home quickly and for the very best price, contact Fleur or Veronique to get started.
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Fleur and Veronique's passion for travel has significantly enriched their understanding of diverse cultures and unique requirements. Their personal experience as expatriates further enhances their ability to cater to the needs of an international clientele seeking insight into life in Washington DC. Fleur's remarkable history of achievements serves as a testament to her expertise. Don't hesitate to contact Fleur's team to discover more about how they can assist you!