Last week, long-term interest rates rose to their highest level in almost 13 years, and it appears homebuyers in the DC area are taking notice.
The latest report on the regional housing market out today from Bright MLS shows that closed home sales were down 17% in the area in April, and pending home sales, homes that went under contract, also fell across the board.
Every local jurisdiction saw pending sales fall with Montgomery County (-15%), DC proper (-13%) and Arlington County (-9%) seeing noticeable drops compared to April 2021. Pending sales have fallen in four of the last five months in the DC area.
"Higher mortgage rates, decreased affordability and limited inventory have all contributed to lower demand this spring compared to last spring," the report said.
Home prices are also likely a factor in lower sales. Median prices were up across the region last month, hitting $700,000 in Washington, DC and rising 18% year-over-year in Loudoun County.
"In April, the region’s median sale price increased by 9.2% compared to a year ago, which is up by $50,000," the report said. "The region’s median sales price is now $166,000 higher than it was five years ago."
Photo courtesy of Carlo Russo with HD Bros.
This article originally published at https://dc.urbanturf.com/articles/blog/the-5-effect-on-the-dc-area-housing-market/19634.
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