Market Update - DC Metro
Market Strong in the D.C. Metro AreaPrices Up Fastest Since June 2022
Median price still rising.
In November, the median sold price in the Washington, D.C. metro area was $570,000, which was up 5.8% from November 2022. The median price in the region has been rising for six consecutive months and is up by more than 25% from 2019.
Number of sales down.
Both new pending sales and closed sales continue to track below last year’s levels, with pending sales down 5.1% and closed sales down 9.3% year-over-year.
Sparse inventory.
A lack of inventory continues to be the primary constraint on the market. Active listings fell again this month, down 12.4% compared to a year ago. Inventory in the Washington D.C. metro is less than 60% of what it was in 2019. New listing activity continues to be very slow. There were 3,268 new listings in November across the Washington D.C., which is down 23.7% compared to last November. The market remains very fast paced, with the median days on market at 11 in November.
Market Outlook
Home sales in the Washington D.C. metro area were very low in 2023, as higher mortgage rates and low inventory continue to be constraints on the market. Market activity is expected to increase in 2024 as mortgage rates fall. Rates peaked in early November, reaching close to 8%, but rates have been falling steadily and likely will fall below 7% by the end of the year.Declining mortgage rates will increase both the number of sellers and buyers in the market in 2024. Homeowners who have a very low mortgage rate have been reticent to list their home for sale. But family and financial challenges will slowly shift priorities and more homeowners will list their home for sale as we head through 2024. Lower rates will also bring more buyers off the sidelines and increasing overall transactions in 2024 in the Washington D.C. metro area.