The month of June provided the clearest evidence yet that surging interest rates and high home prices are having a big effect on the DC-area housing market.
The June housing report out today from Bright MLS states that the median home price in DC came in at $725,000 last month, matching the highest level on record for the city. The median price for the region came in just below record levels at $598,000.
These prices combined with interest rates approaching 6% resulted in home sales dropping by the sharpest levels since the beginning of the pandemic.
"Housing market activity has peaked across most local markets in the Washington metro area," the Bright report stated. "New pending sales activity declined dramatically year-over-year in most counties and cities, with the biggest declines in the Northern Virginia suburbs—Falls Church City (-40.9%), Arlington County (-33.2%), Fairfax County (-32.6%), and Loudoun County (-31.0%)."
While sales fell, the supply of homes might finally be going back up. The total number of homes for sale was down slightly compared to last year, but single-family detached homes and townhomes were up 13.1% and 21.4%, respectively.
“The market has been cooling since the spring, but in June we really saw the impact of rising mortgage rates and persistently high inflation,” Bright MLS economist Lisa Sturtevant said. “Inventory has bottomed out in the region, with big increases in the availability of both single-family detached homes and townhomes in many local markets.”
This article originally published at https://dc.urbanturf.com/articles/blog/dc-home-prices-match-record-in-june-as-sales-drop-across-the-region/19866.
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