D.C. home sales stagnant
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Home sales were down 23.4% year-over-year in the D.C. area, per RE/MAX’s February report.
Why it matters: In 2022, potential buyers were desperate for more inventory. Now, homes are hitting the market but people can’t afford them.
What’s happening: Rates for a 30-year loan were at 6.09% in early February, and shot up to 6.65% by the end of the month, per Freddie Mac.
By the numbers: The D.C. area’s drop in home sales is roughly on par with the national average.
- DMV homes spent an average of 20 days on the market in January and February this year. That’s a slight decrease from the same period last year.
- Home prices increased 6.2% from January to February.
Zoom out: In their February report, Greater Capital Association of Realtors president Avi Adler said the higher rates mean less competition.
- And because there’s less competition, buyers don’t have to front as much cash as they did a year ago, Axios' Emily Peck reports.
Between the lines: Buyers who can afford these mortgage rates have more power.
- They have more options than a year ago, they can take their time searching, and they can make offers that aren’t wildly above list price.
Yes, but: These rates make buying unaffordable for many, which can mean staying longer in the rental market.
What's next: Mortgage rates dropped nearly a quarter point this month, which means buyer activity will likely pick back up. Plus, D.C.’s spring market is known for having high demand.