Interest rates trigger a D.C. home sale slow down

In September, the average D.C. home took over a month to sell, according to the latest data from the Greater Capital Area Association of Realtors. The trend is a continuation of a market cool-down that started over the summer.

State of play: Even though buyers have gained a bit more control as the market normalized in recent months, interest rates (which have reached a 20-year high) have weakened their buying power and caused homes to sit on the market longer.

Yes, but: “It’s not like the market has died or people are singing the blues,” TTR Sotheby’s International Realty senior vice president Maxwell Rabin tells Axios. Rabin says he’s still seeing solid activity.

By the numbers: Homes spent an average of 34 days on the market last month, according to GCAAR. That’s compared to 30 days in August and 28 days in September 2021.

• The number of closed sales in D.C. was down 21.3% compared to August, and down 18.8% compared to September 2021.
• The D.C. median sold price was $619,500 last month, which is down 4.6% compared to August and up 1.1% compared to September 2021.

Good news for homebuyers: The number of new D.C. listings shot up a whopping 78.1% from August to September, which can in part be attributed to the beginning of fall when activity picks up after the slower summer season.

Zoom out: The data shows Montgomery County is experiencing a similar slowdown, with a decrease in closed sales and an increase in average days on the market.

What’s next: Real estate trends are seasonal, so expect to see less activity toward the end of the year as potential buyers and sellers focus on the holiday season.