D.C. home sales stagnant
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.
More Washington D.C. stories
No stories could be found
Get a free daily digest of the most important news in your backyard with Axios Washington D.C..