The DC Area Continues To Move Towards A Buyers Market

• September 11th 2024

by UrbanTurf Staff

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Back in July, we wondered if the housing market in the DC region was moving in favor of homebuyers. New data shows that is likely happening. 

The latest report from Bright MLS found that there were 4,351 home sales across the DC area in August, a 5% drop compared to last year and the lowest August sales level in 16 years. Two reasons are likely to blame for that -- median home prices rose 4.6% in August to remain above $600,000, and interest rates, while dropping, are still too high to entice buyers to get back into the market. 

“Mortgage rates have been coming down since early July but the slight decline in rates has not had an impact on affordability in the region,” said Bright Chief Economist Lisa Sturtevant. “Rates will fall further in the coming months and prices will decline seasonally, which should bring more buyers into the market. Buyers will have more leverage as inventory continues to increase this fall.”

The supply of homes for sale is another metric that is moving in favor of buyers. Inventory in the region has now risen for seven months in a row, and active listings for sale were up 25% at the end of last month, likely the result of slow sales activity. 

With the prospect of the Fed cutting rates later this month, mortgage rates will likely drop further and we will monitor whether or not that brings buyers back into the market. 

This article originally published at https://dc.urbanturf.com/articles/blog/the_dc-area_continues_to_move_towards_a_buyers_market/22699.