DC metro home price gains slow to 2 year low
The median price of a home that sold in the D.C. metro area in July was just short of $563,000, up 2.3% from July of last year. Listing service Bright MLS reported that was the lowest year-over-year price gain since June 2020.
Price gains are decelerating due to a combination of higher mortgage rates and growing affordability challenges in the region, Bright MLS said.
July was also a slow month for sales, with contracts signed to buy a home down 27% from a year ago. It was the lowest number of July pending sales since 2014.
The slowdown in sales may start playing out in favor of potential buyers. Last month saw the first year-over-year increase in the number of homes for sale in the D.C. metro since January 2019. There are almost 16% more active listings than there were in July of last year.
“Expect home sales activity to continue to slow and inventory to expand further in the coming months. Prices will continue to rise in most local markets, though the pace of price growth will be much lower than it has been over the past two years,” said Bright MLS chief economist Lisa Sturtevant.
Homes are still selling quickly, though the median days on market last month was one day longer than a year ago, at eight days.
Buyer interest also continues to wane. The number of in-person showings real estate agents scheduled last month was down 31.5% from a year ago.
Below are median selling prices in July around the D.C. metro region, courtesy of Bright MLS: