D.C.-area home sales plunged almost 20% in October
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The D.C. area's home sales took a nosedive last month, according to a new report from real estate group Bright MLS.
The big picture: It's more evidence that area buyers and sellers are staying on the sidelines as rates remain high and economic uncertainty prevails.
By the numbers: The number of closed home sales across the Washington region dropped 19.2% in October compared to a year ago, per Bright data.
- New purchase contracts declined 20.4%.
- Showings were down 15.2%.
Seller activity also slowed, with new listings dropping 6.1%.
- Meanwhile, active listings jumped 22.1% as buyers continued to watch and wait.
- And while the median sale price remained relatively stable — $625,000 — it did drop 0.8%, marking the first year-over-year decline in over three years.
What they're saying: "Buyers are holding back this fall with rates above 7%," said Bright MLS chief economist Lisa Sturtevant in a release.
- "Higher-income buyers and cash buyers are still in the market, but it has gotten very difficult for first-time and moderate-income buyers."
Yes, but: While buyer activity dropped across all of Washington's jurisdictions, D.C.'s median sale price still saw an increase (3.6%), along with several other markets including Fairfax city (6.2%) and Alexandria (5.3%).
Zoom in: Meanwhile, D.C.'s closed home sales declined 6.9%, and new purchase contracts dropped 15.2%.
- Showings also dropped 11.8%.
Zoom out: It's not just the DMV that's struggling — sales dropped 12% across the Mid-Atlantic in October compared to a year ago.
- And new purchase contracts dropped 17.4%, while showings were down 12.8%.
What we're watching: Things will likely stay the same through the end of the year, as buyers and sellers wait for the landscape to improve, per Bright.
- And buyers who do jump into the market might have more negotiating power.