D.C. Metro home buyers are seeing stiff competition as the region emerges from COVID-19 shutdowns.
Buyers are facing off against each other more frequently as an impactful increase in new listings has remained elusive. Sellers scared out of the spring market by restricted showings and negative headlines are slowly starting to list their properties for sale. The region has long needed more housing inventory, and the pandemic further crushed supply, while Buyer demand remained strong.
Here is the data:
Some take-aways on the state of the DMV Housing Market:
- Housing inventory is down vs 2019, but trending upward — New active listings are down 33.3% from last year. That means there are fewer new listings on the market. But May’s numbers show an 11% increase in new listings from April and the trend is expected to continue in the months ahead.
- Properties are selling quicker — The median days on the market for properties has decreased by 3 days to just 9 days on the market. Buyers need to be able to act quickly because homes are selling fast.
- Home prices are up 4.2% year-over-year — The region’s median sales price is now $500,000. The median sales price in April was slightly higher ($507,000) when supply was even lower. This is the result of heavy competition even during the peak of the health crisis.
- Lower interest rates are fueling strong Buyer demand — Buyers have more buying power due to lower monthly payments. 30-year fixed rate mortgages at the end of May averaged 3.15% for well-qualified borrowers. That’s down from 3.95% a year ago and about $150/month in savings at the median DMV home price — or $54K less in payments over the life of the loan.
Real estate markets are hyper-localized. If you want to know what the market looks like in your neighborhood, reach out and consult one of our realtors. Or learn more ways for Buyers to get an edge on our Home Buyer Tips Blog.