Housing Market Trends
Slowest August sales since 2008 in the Washington DC metro area. There were 4,351 sales across the DC metro area in August, which was 5.1% lower than last year and the lowest August sales total in 16 years. Year-to-date, sales in the Washington DC region are running two percent below 2023.
High home prices are sidelining some buyers. The median price in August was $612,000, up 4.6% year- over-year.
Buyers who remain in the market are able to take a little more time. The median days on market was 10 in August, up from eight days in July and in August 2023.
Inventory has increased for seven months in a row, with the number of active listings up 25.5% at the end of August. New listings were down 1.2% which means inventory growth was driven by slower sales activity.
Market Outlook
Mortgage rates have been coming down since early July, but the slightly decline in rates has not had an impact on affordability in the region. Rates will fall further in the coming months and price will decline seasonally, which should bring more buyers into the market. Buyers will have more leverage as inventory continues to increase this fall.
Inventory remains low, though there have been small increases:
Here's a great article:
Housing Market Predictions For 2024-2025: When Will Home Prices Be Affordable Again?
The sustained low number of new listings relative to demand is the primary reason home prices continue to rise, especially in the case of single family homes.
Where are prices going? As long as supply remains low relative to demand, upward pressure on prices will continue. The gridlock in inventory will likely continue until mortgage rates decline enough to incentivize US homeowners with <4% mortgages to put their properties on the market (many experts suggest 5.5% as the magic threshold). However, a substantial reduction in mortgage rates will likely result in increased demand for still-limited housing inventory, adding additional upward pressure on prices. The answer? If you plan to hold a property for 5-10 years or more, buying real estate today is better than waiting until later. If you want to sell your home, sellers have a lot of leverage in the current market.
