As DC-Area Home Prices Break Record in May, The Market Shifts
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.
story continues below
loading...story continues above
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.
See other articles related to: dc area home prices, dc area home sales, dc area housing market, dc housing market, dc housing market trends
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.
Most Popular... This Week • Last 30 Days • Ever
In this article, UrbanTurf will explain what special assessments are, how they work, ... read »
Plans are moving forward at the site of a long-planned project in Ivy City, however w... read »
Nearly 1,400 residential units are on the boards around Union Market, about the same ... read »
Up 8% year-over-year, it is the first time that prices have exceeded $800,000 for det... read »
If there was ever a place where the old adage “one man’s trash is another man’s... read »
- What Are Special Assessments in Condo Buildings and What Do They Cover?
- Douglas Development Pitches Large Warehouse For New City Site Along New York Avenue
- Hotels, A Public Park and The 1,400 Units In The Works For Union Market
- The Price For A House in The DC Area Hit A New High in April
- Tile, Furniture, Appliances & (Much) More -- The Local Warehouse Chock Full of Salvaged Home Goods
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro