Record Prices Sideline Homebuyers in May, As Supply Soars in DC Area

• June 11th 2024

by UrbanTurf Staff

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For years, the story in the DC area housing market has been a lack of homes for sale. Now, that is beginning to change.

A report out today from Bright MLS on the state of the regional housing market in May showed record home prices and a drop in homebuyer demand is leading to a rising supply of homes for sale. 

Last month, regional home prices matched their all-time high of $640,000 (set just in April), as the active inventory of homes for sale rose nearly 32%, year-over-year. There is now a two-month supply of homes for sale in the DC area, nearly doubling the number of homes on the market compared to the beginning of 2023. 

The combination of high home prices and high interest rates is dampening buyer demand. Pending home sales were down 6.5% in region in May; in DC proper, sales fell nearly 20%. 

"The slowdown in new pending sales suggests that the DC area housing market may be in a cooldown period this summer," Dr. Lisa Sturtevant, Chief Economist at Bright MLS, told UrbanTurf. "The biggest challenge in the market right now is affordability. Some buyers—particularly first-time and moderate-income buyers—may sit the market out, waiting for rates to come down later this year. Expect price growth in the region to moderate."

Thumbnail photo of home that sold in May. Courtesy of Kevin Kearny.

This article originally published at https://dc.urbanturf.com/articles/blog/record_prices_sideline_buyers_in_may_as_supply_soars_in_dc_area/22405.