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The 2023 DC Real Estate Quasi-Buyers Market

By
Real Estate Agent with Compass | 1313 14th St NW DC 20005 Licensed in DC & VA

The Fed Created a DC Home Buyers Market, Then Priced Non-Cash Buyers Out

As mortgage interest rates inflated, the DC market slowed, offering buyers a rare opportunity... but they quickly found that higher rates meant tighter lending conditions and huge payment hikes. With the Fed repeatedly dismissing hopes of meaningful 2024 rate reductions, many buyers sat out the one opportunity they may have had to purchase in the District without mad bidding wars, price escalations and harsh terms.

 

The Numbers Told A Different Story

Total sold dollar volume for 2023 shows a significant contraction, declining by 22.19% to $5.33 billion from 2022’s $6,847,085,812. The number of units sold saw a substantial drop of 21.97%. The median sold price, a key indicator of market health, experienced a more pronounced decrease, falling by 3.96% to $630,000.

Data spanning from January 2023 to November 2023 creates the narrative of a buyer’s market, but the reality was quite different. It was a ‘buyer’s market’ only for those flush with cash, or able to shoulder the risk of a lack of refinance options the following year.

The Story Numbers Don't Tell

The real opportunities in the DC market this year were not those typically reflected in data; they were the market conditions in which buyers found comfort and sanity. Buyers experienced a greater number of choices with increased inventory (supply rose +53.2% in Q1 over 2022), fewer bidding wars, the opportunity to include important contract terms such as inspection and financing contingencies and 30 day closing cycles (as opposed to the more typical 2-3 week cycles), and the longer Days On Market (average DOM increased by 16.67% to 35 days) allowed enough time to think over a significant purchase rather than being forced into a quick decision by offer deadlines.

Property Types and Financing Trends

Breaking down the data by property types, attached homes fared slightly better than their detached counterparts, experiencing a 0.56% decrease in average sold prices compared to a more significant 5.54% decline for detached homes. In DC, we know that this is at least partially attributable to three factors;

Read the full post at realestateinthedistrict.com

Posted by

Susan Isaacs, Realtor

The Isaacs Team LLC

Partnering With DOMO

Compass

1313 14th Street NW DC 20005

Find us at:

realestateinthedistrict.com

Equal Housing Opportunity

Copyright - All rights reserved The Isaacs Team LLC

Comments (2)

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Interest did kick out a lot of buyers. Have a super fantastic week!

Bill Salvatore, Realtor- Arizona Elite Properties

Dec 26, 2023 05:22 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Susan - in my opinion, "quasi" is an excellent qualifying word.  It can be combined and compounded in many sorts of ways.  In real estate, it can help connect conversations.  After all, isn't that important in any conversation?  In, around and far beyond Washington DC?

Best wishes for a happy 2024 with continued success.  

Dec 26, 2023 07:26 AM