As interest rates headed north in November, home sales in the DC region went in the opposite direction.
The latest report from Bright MLS on the regional housing market finds that there were 3,671 home sales in November, a 42% drop compared to a year ago. It is the lowest sales volume for the month of November in a decade.
"In November, the number of new pending sales was down by more than 40% compared to last year," the report stated. "The biggest year-over-year declines were in Falls Church City, VA (-61.5%) and Arlington County, VA (-50.7%)."
The drop in home sales activity can largely be attributed to mortgage rates rising above 7%, but a lack of new listings hitting the market is also to blame.
"A bigger factor is a lack of inventory which remains significantly below normal levels and affordability challenges that continue to price some buyers out of the market," the report stated.
Home sellers are adjusting their prices in reaction to the current climate of the market. While the median home price in the area was up slightly in November, prices were down year-over-year in DC proper, Arlington and Alexandria.
This article originally published at https://dc.urbanturf.com/articles/blog/the_dc-area_housing_market_in_november_felt_the_full_effect_of_high_interes/20404.
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