Even as potential homebuyers in the D.C. region begin to gain some leverage, the number of homes sold in the metro last month was the lowest for an August since 2008.
Closed sales in August were down 5.1% from August of last year, despite a jump in the number of homes for sale. The number of active listings on the market in the D.C. metro at the end of August was 25.5% higher than it was a year ago, according to listing service Bright MLS.
The biggest challenge for buyers remains price. The median price of a sale last month was $612,000, 4.6% more than a year ago.
“Even if interest rates come down, which they will, affordability is still going to keep some buyers out of the market. So I think it might be a slower-than-expected fall in the D.C. area, simply because we have hit those affordability ceilings,” said Bright MLS chief economist Lisa Sturtevant.
Beyond the challenge of price, the market dynamics have shifted somewhat, particularly when it comes to the competitive frenzy of recent years.
“Back during the pandemic, buyers were often forced to make offers without a home inspection, without an appraisal, sometimes without even seeing the home”, Sturtevant said. Now they have a little bit more time to view multiple homes, to ask questions, and to take time to make their decision.”
“Buyers should feel comfortable in this market asking for things. Asking for a home inspection, or even asking for help in making repairs when home inspections come back with those problems. That’s very different than it was a year ago,” she said.
Homes in the D.C. area are still selling quickly, in an average of 10 days, though that is two days longer than a year ago.
The dramatic increase in inventory comes with a caveat: it is still historically low, and the rise in listings is not universal.
“Compared to 2019, we’re still only about 63% of where we were before the pandemic. But it depends on the kind of home you’re looking for. If you’re looking for a condo, there are more listings now than in 2019. If you’re looking for a single-family home, it is a much tighter market,” Sturtevant said.
Below is a snapshot of sales throughout the D.C. metro in August, courtesy of Bright MLS:
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