Multiple offers, bidding wars, and offers without contingencies have become relics of the past – yet the DMV housing market remains strong. The news can seem contradictory, but the housing market was in such a frenzy, that even with a “slow down”, we are still robust.
According to Bright MLS, July 2022 saw the slowest price growth in more than 2 years in our region, however, median sales were 2.3% higher than last year. Median sales price was $563,000, nearly $50,000 higher than in July 2020!
Higher mortgage rates and inflation have had a decelerating effect on the market:
- Closed sales decreased 26.6 %
- New pending sales decreased 27%
- Showings were down 31.5%
- Inventory increased by 15.6%
Despite these factors, inventory in the DC metro area is at a 1.32 month supply, and median number of days on market is 8 for the metro area and 15 for Washington DC.
What does this mean for buyers? What does this mean for sellers? Somehow, it is good news for both!
Those who are in the market for a new home have less competition and more options. Buyers have more time to make an informed decision. Inspections and mortgage contingencies are standard once again.
Sellers are still seeing their investments appreciate, and homes are selling more quickly than they were pre-pandemic. Pricing correctly, however, is a key factor in selling a home. Sellers have become accustomed to seeing prices rise at a rate that no longer exists, and many are overpricing their homes. According to a July 21 Bright report, “Nearly 40% of homes currently listed for sales in the Washington area have had a price reduction.”
If you are thinking about entering this market, whether you’re a buyer or a seller, let us help you set the right expectations. The market is shifting. Pricing for both buyers and sellers is both an art and a science and it’s crucial to work with an agent who has experience in a market shift so that you don’t overpay or let your home sit on the market and lose value in the eyes of buyers.
Fortunately, here at The Reishman Group, we’ve been through our share of market shifts and can help you during changing times. If you or someone you know is looking to buy or sell a home, we’d love to help.