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.
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