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DC Buyers: The Time Is Now

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

Today's Market Data Shows Opportunity For DC Homebuyers

New market data was released for Washington DC this morning. Prices are down across the board except for a slight uptick for condos and co-ops, median days on market have increased, and early spring inventory levels are showing some growth.

 

This should be a prompt to buyers. The market isn't likely to offer much much more opportunity for buyers before the Fed starts cutting rates and DC returns to its former cutthroat seller’s market.

 

During the month of February in Washington DC:

  • The median sold price for Condo & Coop properties for February was $495,000, representing an increase of 3.4% compared to last month and an increase of 1% from Feb 2023. The average days on market for units sold in February was 54 days, 26% above the 5-year February average of 43 days. There was a 14.1% month over month increase in new contract activity with 259 New Pendings; a 7% MoM increase in All Pendings (new contracts + contracts carried over from January) to 338; and a 5.2% increase in supply to 1,024 active units. This activity resulted in a Contract Ratio of 0.33 pendings per active listing, up from 0.32 in January and a decrease from 0.46 in February 2023. The Contract Ratio is 45% lower than the 5-year February average of 0.60
  • The median sold price for Detached properties for February was $850,000, representing a decrease of 9.6% compared to last month and a decrease of 8.4% from Feb 2023. The average days on market for units sold in February was 48 days, 36% above the 5-year February average of 35 days. There was a 36.1% month over month increase in new contract activity with 83 New Pendings; a 9.5% MoM increase in All Pendings (new contracts + contracts carried over from January) to 115; and a 15.1% increase in supply to 229 active units. This activity resulted in a Contract Ratio of 0.50 pendings per active listing, down from 0.53 in January and a decrease from 0.58 in February 2023. The Contract Ratio is 39% lower than the 5-year February average of 0.82. 
  • The median sold price for Attached/Townhouse properties for February was $699,300, representing a decrease of 0.1% compared to last month and a decrease of 14.7% from Feb 2023. The average days on market for units sold in February was 40 days, 11% above the 5-year February average of 36 days. There was a 6.5% month over month increase in new contract activity with 198 New Pendings; a 5% MoM decrease in All Pendings (new contracts + contracts carried over from January) to 283; and a 9.5% increase in supply to 567 active units. This activity resulted in a Contract Ratio of 0.50 pendings per active listing, down from 0.58 in January and a decrease from 0.63 in February 2023. The Contract Ratio is 50% lower than the 5-year February average of 0.99. 

 

To put this data in perspective for DC homebuyers, a higher Contract Ratio demonstrates a relative increase in contract activity vs supply, and indicates the market is moving in the seller's favor.  A lower Contract Ratio signifies a relative decrease in contract activity compared to supply, and indicates the market is moving in the buyer's favor.

 

Read our full market data report

 

So why should buyers jump into the market now, instead of waiting for mortgage interest rates to drop?”

Because:

  • Lower rates will create new buyer activity and competition
  • Inventory levels will still be too low to accommodate demand
  • These conditions will combine to put upward pressure on prices.

Remember, you can refinance your rate, but your home price can't be changed.

 

So unless you want to pay more for a home, the time to buy is now.

 

Read our full post on all the reasons Washington DC homebuyers should act now!

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(1)

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Susan Isaacs | DC Real Estate Consultant this is good information for both Buyers and Sellers in your area.

Mar 11, 2024 11:37 AM
Susan Isaacs | DC Real Estate Consultant

Thanks George!

Mar 11, 2024 03:49 PM