As interest rates remain above 5% some homebuyers are altering their budget and approach to their next home purchase. So UrbanTurf wanted to find out if home sellers in DC are adjusting their prices to react to this change in behavior.
Bright MLS recently provided UrbanTurf with data showing that about 1 in 5 properties listed for sale in DC this year has seen a price reduction, which is not out of line with price reductions in recent years. However, the neighborhoods that are seeing price reductions may provide a good sense of what is happening with the market.
In more moderately priced areas, like Carver-Langston, Southwest Waterfront and Randle Heights, about 40% of homes listed in 2022 have dropped their prices, while in higher-priced areas, like AU Park and Woodley Park, there have been almost no price reductions.
"We are seeing price drops in markets where there are more first-time buyers who might be sensitive to rate hikes," Bright MLS chief economist Lisa Sturtevant told UrbanTurf. "Higher-end markets are less price sensitive and buyers are not as affected by rising rates."
Sturtevant also pointed out that many of the areas in DC with the highest percentage of price reductions are neighborhoods east of the Anacostia River where there is a lot of developer interest.
"Flipped houses often shoot for the moon with their initial price and then have to come back down to earth."
If you are curious about the percentage of homes that have seen price reductions in your neighborhood, shoot us an email at editor(at)urbanturf.com and we will give you the answer.
This article originally published at https://dc.urbanturf.com/articles/blog/where-are-home-sellers-dropping-their-prices-in-dc/19673.
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