Feb 28, 2023 - Real Estate

D.C. area homes are taking longer to sell and dropping in price

Median home sale price in the <b style='background-color: #FFCD7B; color: #53390E; display: inline-block; padding: 1px 4px; whitespace: no-wrap;'>D.C.</b> metro area and the <b style='background-color: #E2E2E2; color: #454545; display: inline-block; padding: 1px 4px; whitespace: no-wrap;'>U.S.</b>
Data: Redfin. Chart: Axios Visuals

The D.C. metro's real estate market has continued its slowdown, giving buyers more control.

Why it matters: Any relief from sky-high home prices is welcome, especially as mortgage rates creep up.

By the numbers: The D.C. metro's median home sales price was $475,000 in January, up just 0.5% from last year and down 3% from December.

  • Inventory was up 20% from last year.
  • Homes sat on the market for 59 days on average in January, up from 21 days last year.

Zoom out: Nationally, median home sales prices have crept up 1.3% from one year ago.

  • The national median home sales price in January was $383,000.
  • Sales fell for the 12th month in a row, according to the latest data from the National Association of Realtors.
  • As demand falls, homes sit on the market a little longer, which gives buyers a little more room to negotiate.

What’s next: Spring, which is typically marked by high demand, more competition, and higher home prices, is right around the corner.

  • If spring 2023 follows typical trends, we should expect home prices to rise again in the near future.
  • Yes, but: Experts predict 2023 will see a far less frantic housing market than in 2022.

The bottom line: We're starting to see a moderate market correction, but home values aren't falling.

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