Dec 1, 2022 - Real Estate

Buying a home in D.C. is easier, but not cheaper

An 'Under Contract' sign outside of a D.C. townhome. — D.C. homes are sitting on the market longer now than they were over the summer. Photo: Andrew Harrer/Bloomberg via Getty Images

The D.C. metro area's real estate market is starting to level off, according to the latest data from Redfin/MLS, Axios’ Brianna Crane writes.

Why it matters: After more than two years of plummeting inventory and high prices, homebuyers in the D.C. area have waited a long time for a little relief.

Yes, but: Mortgage rates started to surge in May and have since fluctuated between 6-7%, making monthly mortgage payments more expensive than they were a year ago.

By the numbers: Median home sales prices dropped from $554,000 in May to $515,000 in October, and inventory is up 15.7% since May.

Homes also sat on the market three times longer.

Homes sold in 12 days on average in May. In October, the average home sold in 36 days.

Half as many homes have sold above list price, 30.3% in October, compared to 61.2% in May.

In October, 32.7% of listings dropped their list price, up nine percentage points since May.

What we're watching: A reprieve might be on the way. Home prices are expected to start dropping nationwide, Axios' Matt Phillips writes.

Existing home sales have fallen for nine straight months, and the supply of single-family homes is growing. With mortgage rates near 7%, experts say a large-scale housing slowdown is becoming increasingly likely.

Add Axios on Google

Buying a home in D.C. is easier, but not cheaper

More Washington D.C. stories