Aug 3, 2022 - Real Estate

Sellers drop prices as D.C.'s housing market cools

Illustration of a real estate sale sign shaped like a downward point arrow

Illustration: Annelise Capossela/Axios

The elusive “return to normal” has evaded us in so many ways during the pandemic, but the real estate market is finally getting there thanks to lower demand.

Why it matters: D.C.’s cooling market is giving buyers more control.

What’s happening: Inflation and higher interest rates have prompted buyers to slow their homebuying process.

The decrease in competition means that, unlike earlier in the pandemic, buyers are less likely to be pressured into waiving contingencies and appraisals, Christine Walker an agent with CENTURY 21 Redwood Realty, tells Axios.

Additionally, decreased demand means bidding wars are far less common, according to BrightMLS. 

As a result, sellers generally can’t expect to get as much for their homes as they would’ve earlier this year. So, they’re entering the market at lower price points or lowering their listing price after sitting on the market for too long.

  • Roughly 40% of listings currently on the market in the D.C. area have undergone a price reduction, according to BrightMLS.

Yes, but: Because of higher interest rates, buyers have less buying power and may still have high mortgage payments.

  • What they’re saying: “A house should be on the market for two weeks. And there should be a little bit of room to negotiate between buyer and seller,” Greater Capital Area Association of Realtors president Harrison Beacher tells Axios. “You shouldn’t have to waive everything and sprint within hours to submit an offer.”

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