DC MARKET CONDITIONS
How’s The Market?
Fresh market data for the District of Columbia, and our take on the market. Looking for data specific to your neighborhood? Reach out!
The Latest Washington DC Real Estate Data
The Numbers By Property Type
CONDOS | CO-OPS
Washington DC Condo & Coop properties recovered in August with a Median Sold Price of $477,450, up 2.7%% from July, also up 0.5% from August 2022, even though units took longer to sell. Average days on market for units sold in August was 43 days, which is 27% higher than the 5-year August average of 34 days. There was a significant 31.6% month over month decrease in new contract activity with 242 New Pendings; a 30.7% MoM decrease in All Pendings (new contracts + contracts carried over from July) to 312; and a 4.2% increase in supply to 969 active units. This activity resulted in a Contract Ratio of 0.32 pendings per active listing, down from 0.48 in July and a decrease from 0.39 in August 2022. The Contract Ratio is 37% lower than the 5-year August average of 0.51
ATTACHED HOMES
The Median Sold Price for All Attached properties in August was $600,000, exactly the same as in July, and also August of 2022. The average days on market for attached homes sold in August was 38 days, 27% above the 5-year August average of 30 days. There was a 26.9% month over month decrease in new contract activity with 418 New Pendings; a 25.8% MoM decrease in All Pendings (new contracts + contracts carried over from July) to 565; and a 4% increase in supply to 1,560 active units. This activity resulted in a Contract Ratio of 0.36 pendings per active listing, down from 0.51 in July and a decrease from 0.40 in August 2022. The Contract Ratio is 38% lower than the 5-year August average of 0.58.
DETACHED HOMES
August’s Median Sold Price for Detached homes in DC was $863,250, a big drop of -31.2% from June, and down -27.5% from July of 2022. The average days on market for detached properties sold in July was 23 days, 3% lower than the 5- year July average of 24 days. There was a 2.4% month-over-month decrease in new contract activity with 82 New Pendings; a 6.5% MoM decrease in All Pendings (new contracts + contracts carried over from June) to 115; and a 9.4% decrease in supply to 240 active units. This activity resulted in a Contract Ratio of 0.48 pendings per active listing, up from 0.46 in June and a decrease from 0.59 in July 2022. The Contract Ratio is 41% lower than the 5-year July average of 0.81.
DOMO of Compass
Market Update
With Susan Isaacs
The numbers and intel that matter when you’re buying or selling a home in the District.
Market data is a snapshot of the past. Current market conditions provide a window to the future. Understanding market history and what’s driving them forward provides you with the opportunity to get out in front of market conditions. And getting ahead of the market is always the goal!
Market Data Points
In the District of Columbia:
- Sold Dollar Volume in August registered $475,874,112, falling -15.18% from the August 2022 total of $561,049,116;
- Median Sold Price in August was $639,000, barely a drop at -1.58% from August a year ago;
- The average days on market for August hit 37 Days, an increase of 23.33% from August 2022;
- Avg SP to Orig. List Price Ratio in August was 97.5%, dropping slightly to -0.02% compared to August 2o22;
- The August Ratio of Avg SP to Avg Orig. LP came in at 97.0% , just slightly lower (-0.56%) than August 2022.
Where’s The Market Going?
WHERE WILL INTEREST RATES GO IN 2023?
As we’ve experienced throughout the past 17 months, unforeseen factors can immediately and significantly impact rates. Predictions by analysts have gone as high as 8.75%, but the top for 2023 mortgage interest rates is currently expected to be in the mid-to-high 7% range.
Rates are forecast to decline in 2024 once inflation is under control. Though we are unlikely to see rates in the 2%-3.5% range again, many pundits think rates will eventually settle in the mid-4% to mid-5% range–at least for a while!
What You Can Do Now
Buyers can utilize creative financing programs and assumable mortgages for the next 8-24 months. Since Washington DC home prices are slightly softer than usual and there’s less competition for desirable homes, it’s an advantageous time to buy. Rates are expected to come down enough in 2024 to make a refinance worthwhile.
WILL HOME PRICES FALL AS A RESULT OF HIGHER RATES?
The Fed has signaled a measured approach to additional rate hikes, taking a quarter point increase in April, a “skip” in May, and another “skip” in June, followed by a quarter point increase in July and a “skip” in August. The Federal Reserve is insistent upon hitting its target of 2%, and most experts agree that we can expect another quarter-point increase in September or November.
Due to seriously low inventory, Washington DC home prices are likely to hold or increase slightly, depending on home types and locations. Any price declines are expected to be slight, and incremental. Premium neighborhoods and luxury homes are expected to continue to appreciate in moderation.
Keep an eye on U.S. economic news and global trends, since we’re once again in uncharted territory. This is the first full year significantly higher rates impact the market.
ARE THERE OPPORTUNITIES FOR FIRST TIME BUYERS?
Absolutely. As mentioned earlier on this page, it’s a good time for buyers to acquire homes in Washington DC. Ask us about DC first time home buyer programs sich as DC Open Doors and HPAP. If you don’t qualify for these, there are still viable short-term mortgage loan programs like ARMS, opportunities for assumable mortgages, and more solutions. An experienced agent will be able to guide you through the options and help you decide which one is best for you.
Contact us today for more information!
Look Ahead To 2024
Susan’s Tips
What’s ahead for 2024?
Susan comments on the latest Conference Board U.S. Economic Outlook and their predictions for 2024.
MARKET EXPERTISE
DOMO of Compass
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