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Washington DC Metro
Real Estate Report
Washington DC/ Maryland/Northern VA
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"Your Local Realty Partners"
Serving DC, MD & Northern Va.
202.276.2295
A REMAX Allegiance Home Team - 220 7th St SE Washington DC 20003 - 202.547.5600
July 2023 Market Report
Washington, D.C. Metro
DATA AS OF August 6, 2023
Closed sales
Median sales price
Median days on market
New pending sales
New listings
Active listings
Months of supply
Showings
July 2023
4,360 $590,000
7
4,630
4,881
5,731
1.33
102,411
▼ ▲
▼
▼
▼
▼
▲
▼
vs. July 2022
-20.1% +4.8%
-1 day
-10.3%
-34.4%
-29.3%
+0.8%
-8.4%
Washington, D.C. Market Key Findings
Active Buyers Drive Strong Price Rebound
Home prices rose at fastest rate in more than a year
The Washington area’s hot summer weather typically slows
housing market activity but this year home shoppers are still
active, competing over ever-shrinking inventory and driving prices
higher.
In July, the median sales price in the Washington, D.C. metro area
was $590,000, a 4.8% rise from a year ago and the biggest year-
over-year increase since June 2022. Prices are rising faster in the
region’s suburban markets where housing is slightly more
affordable.
While buyers may be active, sellers are still very much on the
sidelines. The number of new listings coming onto the market in
July hit a more than two-decade low and tracked 34.4% below last
year’s level. Overall, across the region, there were just 5,731 total
active listings at the end of July, down 29.3% from a year ago and
less than half of the inventory that was on the market prior to the
pandemic.
Bright MLS T3 Home Demand Index
According to the Bright MLS T3 Home Demand Index (HDI), market activity in the Washington, D.C. metro area has
turned to Slow as a result of low inventory. The HDI was 81 in August compared to 91 in July 2023.
The index for the Washington, D.C. metro is down from 110
last August which indicated Steady market conditions.
Bright MLS T3 Home Demand Index
Home Demand Index
150 130 110 90 70 50
Sep
Oct
September 2021 - August 2022
Nov
Dec
Jan
Feb
September 2022 - August 2023
Mar
Apr
May
Jun
Jul
Aug
Market Outlook
The housing market this fall will be characterized by low inventory and growing affordability challenges in the Washington, D.C. area market. Mortgage rates will begin to come down but likely will remain around 6.5% into the fall. With the market remaining competitive and affordability a bigger concern, prospective home buyers will have to look at neighborhoods further out or compromise on the type or characteristics of the home in order to be successful. Sellers will still have the upper hand in the market, but many homeowners are still locked in the “golden
handcuffs” of a low mortgage rate that will continue to inhibit new listing activity.
Closed Sales Year-Over-Year Change
There were 4,360 closed sales in July in the Washington, D.C. region, down 20.1% compared to a year ago. The number of closed sales is only about two-thirds of what it was in 2019, a more typical year. In July, condos posted a steeper decline in closed sales than either single-family detached homes or townhomes.
80% 60% 40% 20% 0% -20% -40% -60%
JASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJ
2018 2019 2020 2021 2022 2023
Median Sales Price Year-Over-Year Change
The median price has made a 4.8% jump overall to $590,000 in July as compared to last year. Detached homes had a much smaller increase (2.0%) in comparison to attached homes (4.6%) and condos (5.7%). Overall, the median home price in the region is nearly 30% higher than it was in 2019, which has put greater pressure on affordability.
20% 15% 10% 5% 0% -5%
JASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJ
2018 2019 2020 2021 2022 2023
Median Days on Market
After 2 months of being flat, the median days on market is down 1 day compared to last year. In comparison to last month, there was no change overall, but the median days on market for detached homes and condos ticked up 1 day. Low supply in the market is likely to keep days on market down for quite some time as competition continues to be fierce.
Days
35 30 25 20 15 10 5
0
JASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJ
2018 2019 2020 2021 2022 2023
Monthly Market Report Washington Metro
July 2023:
2
New Pending Sales Year-Over-Year Change
The number of new pending sales is down 10.3% overall compared to a year ago, with detached homes seeing the greatest decrease over other home types at 13.1%. At 4,630 new pending sales, this is only 75% of the level of pending sales in 2019.
80% 60% 40% 20% 0% -20% -40% -60%
JASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJ
2018 2019 2020 2021 2022 2023
Active Listings Year-Over-Year Change
Another extreme plummet in listings to 5,731 is evident at the end of July with a decrease of 29.3% overall compared to last July. Inventory is less than half of what it was in 2019. Buyers can continue to expect to face strong competition for homes in their price range as the fall season approaches.
60% 40% 20% 0% -20% -40% -60%
JASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJ
2018 2019 2020 2021 2022 2023
Showings Year-Over-Year Change
At 102,411, showings are 8.4% less than they were last year and 8.6% less than they were last month. Despite fewer listings available, showings may approach last year’s levels as the fall market approaches, an indication of strong buyer demand.
200% 150% 100% 50% 0% -50% -100%
J
FMAMJJASONDJ
2020
FMAMJJASONDJ
2021
FMAMJJASONDJ
2022
FMAMJ 2023
J
Monthly Market Report Washington Metro
July 2023:
3
Monthly Market Report Washington Metro
July 2023:
4
Local Markets
The median price in the Washington, D.C. metro area increased in July, but there was variation across the region, with the strongest price growth in suburban markets, including Frederick County (+7.8%) and Prince George’s County (+7.4%) in Maryland and Fairfax County, VA (+8.0%). Prices in the city and close-in suburbs either fell or experienced modest growth. This pattern reflects both the higher price points and relatively more sales of condos and townhomes, which tend to be lower-priced.
No matter where you are in the region, new listing activity is
far below typical levels. The number of new listings coming
onto the market in July was more than 40% below last year’s
levels in Fairfax County and Arlington County, VA and in
Montgomery County, MD. There is currently less than a
month’s supply of inventory in the suburban markets of
Frederick County and Montgomery, MD and Fairfax County,
VA.
July 2023
vs. July 2022
Alexandria City, VA
Arlington County, VA
Fairfax City, VA
Fairfax County, VA
Falls Church City, VA Frederick County, MD Loudoun County, VA Montgomery County, MD Prince George's County, MD Washington, DC
$545,000 $716,000 $730,000 $702,000 $792,500 $485,000 $710,000 $604,000 $435,000 $625,000
+1.2% -3.0% +9.1% +8.0% -14.3% +7.8% +3.6% +6.0% +7.4% -3.3%
Washington DC Metro
$590,000
+4.8%
July 2023
vs. July 2022
Alexandria City, VA
Arlington County, VA
Fairfax City, VA
Fairfax County, VA
Falls Church City, VA Frederick County, MD Loudoun County, VA Montgomery County, MD Prince George's County, MD Washington, DC
179 189 25 1,041 10
337 410 856 697 616
-21.5% -22.9% -21.9% -19.0% -33.3% -25.3% -24.5% -21.9% -18.5% -12.7%
Washington DC Metro
4,360
-20.1%
MEDIAN SALES PRICE
CLOSED SALES
Local Markets Continued
Alexandria City, VA
Arlington County, VA
Fairfax City, VA
Fairfax County, VA
Falls Church City, VA Frederick County, MD Loudoun County, VA Montgomery County, MD Prince George's County, MD Washington, DC
Washington DC Metro
NEW PENDINGS
July 2023
vs. July 2022
197 186 27 1,085 12
357 477 840 795 654
+2.1% -13.1% -27.0% -10.9% -14.3% -16.4% +3.0% -18.1% -9.2% -6.0%
4,630
-10.3%
NEW LISTINGS
July 2023
vs. July 2022
194 210 26 1,029 15
361 444 837 883 882
-22.7% -40.2% -39.5% -40.6% -6.3% -37.9% -36.6% -40.4% -26.7% -23.5%
4,881
-34.4%
MEDIAN DAYS ON MARKET
July 2023
vs. July 2022
6 9 6
6
6 6 5
7
9 17
-2 days +0 days -2 days -1 day
-2 days -1 day -3 days -1 day +0 days +2 days
7
-1 day
Alexandria City, VA
Arlington County, VA
Fairfax City, VA
Fairfax County, VA
Falls Church City, VA Frederick County, MD Loudoun County, VA Montgomery County, MD Prince George's County, MD Washington, DC
Washington DC Metro
ACTIVE LISTINGS
July 2023
vs. July 2022
174 282 25
951 13
302 430 791 1,023 1,740
-28.4% -38.8% -47.9% -44.5% +0.0% -33.2% -41.5% -40.9% -17.1% -6.7%
5,731
-29.3%
MONTHS OF SUPPLY
July 2023
vs. July 2022
1.01 1.43 1.00 0.96 1.18 0.88 1.04 0.95 1.39 2.91
+5.2% -15.4% -29.1% -19.3% +26.9% -6.4% -13.3% -15.2% +11.2% +29.3%
1.33
+0.8%
Mind the
Pending Sales Gap
The gap between pending sales in 2023 and 2022 has been narrowing. In the Washington, D.C. metro the difference is at its lowest level for 2023.
Pending sales activity is
impacted by demand and
supply, both lower than 2022.
Mortgage rates play a large part in the affordability of a home. Buyers in July faced rates at
least a percentage or more higher than a year ago.
Recall that in January, rates
were more than double what they were in January 2022. As mortgage rates have converged, so has the movement in
pending sales. As rates move even closer, pending sales may track closer to last year’s levels this fall.
Monthly Market Report Washington Metro
July 2023:
5
Local Markets Continued
SHOWINGS
HOME DEMAND INDEX
July 2023
vs. July 2022
August 2023
vs. August 2022
Alexandria City, VA
Arlington County, VA
Fairfax City, VA
Fairfax County, VA
Falls Church City, VA Frederick County, MD Loudoun County, VA Montgomery County, MD Prince George's County, MD Washington, DC
3,700 3,808 683 23,783 202 6,035 9,245 20,476 21,632 12,847
+6.1% -17.6% -1.6% -9.7% +43.3% -10.6% -5.3% -19.5% +1.7% -3.7%
135 129 79 88 109 57 80 70 86 82
-10.6% -34.8% -38.8% -32.3% +3.8% -27.8% -36.0% -30.7% -14.0% -12.8%
Bright MLS T3
Home Demand Index
The Home Demand Index (HDI) captures buyer signals including showing requests, listing views and more to let you know what buyers are doing right now, before they buy. The HDI is forward-looking, providing a picture of what market activity will be this month.
The Home Demand Index was created as part of our strategy to create a nimbler and more innovative MLS platform that
drives your business forward.
Read More about the HDI homedemandindex.com
Washington DC Metro
102,411
-8.4%
81
-26.4%
About Bright MLS
At Shataa & Associates, we strive to provide our clients with the most comprehensive real estate data available in the Mid-Atlantic region. That's why we rely on Bright MLS as our source of truth for market intelligence in six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia.
Bright MLS is an industry leader, providing innovative tools and award-winning support to over 100,000 real estate professionals. This support enables them to deliver on the promise of home to over half a million home buyers and sellers every month.
According to data from Bright MLS, in 2022, their subscribers facilitated a staggering $121 billion in real estate transactions through their platform. This speaks to the power of the platform and the trust that both buyers and sellers have in the professionals who use it.
At Shataa & Associates, we are proud to leverage the data and tools provided by Bright MLS to help our clients make informed decisions about their real estate transactions. We believe that having access to accurate and up-to-date information is key to success in today's competitive market.
If You have any questions concerning the data found in this report or your are thinking about Buying or Selling Real estate in DC, Maryland or Northern Va., Let's discuss your real estate goals today 202.276.2295!
A REMAX Allegiance Home Team - 220 7th St SE DC
202-547-5600
Monthly Market Report Washington Metro
July 2023:
6