For months, the prevailing theory in local real estate was that sales totals were being held back by a lack of inventory coupled with higher prices and interest rates.
While prices kept rising in August, there was more inventory and lower mortgage rates – yet the D.C. region reporded its lowest number of sales for the month in 16 years.
That’s according to Bright MLS, the region’s multiple-listing service, which recorded 4,351 transactions for the month – down 5.1 percent from a year before – as the number of homes on the market was up more than 25 percent from the same period and has increased for seven consecutive months.
Figures represent data for the District of Columbia; Arlington, Fairfax and Loudoun counties and the cities of Alexandria, Fairfax and Falls Church in Virginia; and Montgomery, Prince George’s and Frederick counties in Maryland.
“Homebuyers are taking advantage of more inventory to be choosier and to take more time deciding on a home,” said Lisa Sturtevant, Bright MLS’s chief economist. But at the same time, she noted that the total inventory, while up from a year before, remains low by historical standards.
“The market is still competitive and, depending on the price point and location they are looking in, buyers still need to be prepared to act quickly,” Sturtevant said.
The median sales price of all homes that sold during the month was $612,000, up 4.6 percent. Of the 10 jurisdictions comprising Bright MLS’s metro-area catchment zone, year-over-year prices were up in all but Arlington County and the District of Columbia, which each posted slight decline.
In terms of sales, only one of the 10 – Frederick County, Md. – saw an increase, while the District of Columbia and Alexandria posted double-digit declines.
In terms of home-showings for the month, there were 83,468, a decline of about 5 percent from the same period a year before.
Some prospective purchasers may be waiting for fall, when seasonal declines in competition coupled with expected interest-rate drops could open up more breathing room. Buyers should have “more leverage” in the fall than they’ve had in some time, Bright MLS said.
Figures represent most, but not all, homes on the market. All August 2024 figures are preliminary and are subject to revision.
