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Record Home Prices in the DC Area Continue to Put a Damper on Home Sales

by Nena Perry-Brown

Despite solid competition in the local housing market, evidence is mounting that high home prices are taking a toll.

The November report from MarketStats by ShowingTime, based on Bright MLS data, shows that home prices again hit a decade-high in the region last month, rising by 5.9 percent to hit $449,900. In DC proper, prices rose more than 9 percent to eclipse $600,000. However, rising prices mean that fewer buyers are willing to take the plunge: closed sales fell by almost 12 percent year-over-year — the fourth consecutive month where this metric declined. DC proper and Arlington County saw the biggest drops in closed sales, with respective declines of 17.8 percent and 21.7 percent. 

DC area closed sales and median prices for November. Click to enlarge.

While rising interest rates are also effecting buyer demand, record prices across the region are likely the main culprit. Consider this: DC area home prices have risen 40 percent since 2009, jumping from $321,000 to $450,000. In DC proper, the increase is even more pronounced, skyrocketing 71 percent, from $350,000 to $600,000. 

As for inventory, the number of new listings inched up by 0.3 percent year-over-year across the area; new listings increased by 1.8 percent for the District and stayed flat in Arlington County. Active inventory, however, went up by 2.1 percent regionwide and by a noticeable 14.1 percent in DC proper. 

This article originally published at https://dc.urbanturf.com/articles/blog/record-home-prices-in-the-dc-area-continue-to-put-a-damper/14793

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