The combined headwinds of record prices and rising interest rates played out as expected last month in the DC-area housing market.
The median sales price of a home in the region in May rose to $605,000, an 8% increase compared to last May. It is the first time that the monthly median price has eclipsed $600,000, and home prices are now $160,000 higher than they were in 2017.
While prices rose in May, home sales dove. Closed home sales were down 12% compared to last May and pending sales, homes to go under contract, fell even more significantly, dropping 16%.
Also affecting sales are the lack of choices that buyers currently have in the market. The one-month inventory of listings last month was the lowest level for May on record.
“The Washington housing market has remained competitive. However, the deceleration in buyer activity suggests that economic headwinds are drawing some prospective buyers out of the market,” Bright MLS Chief Economist Lisa Sturtevant said. “In the months to come, expect housing market activity to be slower than the frenzied pace of last year. Prices will continue to rise, but price increases will be lower than they have been over the past two years.”
Photo courtesy of HomeVisit.
This article originally published at https://dc.urbanturf.com/articles/blog/as-dc-area-home-prices-break-record-in-may-market-continues-to-cool/19762.
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