Data as of September 7, 2022
Washington Metro Market Key Findings
Homes Taking Longer to Sell in the Washington Area
Home sales activity continues to slow in the Washington metro area, with buyers holding back and homes remaining on the market longer. In August, there was a total of 5,323 home sales across the region, a 25.3% decline from last August, and 16.1% lower than 2019 levels. Pending sales also continue to decline, which indicates that fall sales will be lower than last year.
After increasing in July, the number of active listings declined in August with fewer sellers listing their properties. The number of new listings in the Washington area was down 26.0% compared to last year, the sixth consecutive month of year-over-year declines in new listings.
There is just 1.22 months of supply, which means the Washington area is still a seller’s market. However, buyers have more leverage on price with less competition in the market.
While price growth has moderated, prices are still on the rise in most local markets in the Washington area. The regionwide median price was up 3.4% compared to a year ago.
Bright MLS T3 Home Demand Index
According to the Bright MLS T3 Home Demand Index (HDI), buyer demand continues to track lower this summer. The September HDI for the Washington metro area was 101 (Steady), down from 122 a year ago (Moderate) and from 110 a month ago.
Buyer demand has tracked lower this month for all housing types in the region, with the biggest month-to-month decline reported for higher price single-family homes.
The frenetic pace of the housing market over the past two years was not sustainable. Cooler conditions in the Washington areahousing market should be a welcome relief for prospective home buyers who will find more options, less competition, and more opportunities for negotiating with sellers. Sellers who price their properties to reflect today’s market, and not last year’s market, will still find eager buyers
Closed Sales Year-Over-Year Change
Home sales activity continues to slow throughout the Washington region. In August, there were 5,323 home sales in the Washingtonmetro area, which is a decline of 25.3% compared to last August. Sales fell 2.4% between July and August which is a slightly lower-than-typical monthly dip. Sales are down year-over-year across all housing types, with the biggest decline among townhomes.
Median Sales Price Year-Over-Year Change
Prices continue to rise in the Washington area. In August, the median sales price was $555,000, which is up 3.4% compared to a year ago. Prices of single-family detached homes rose the most quickly in August (+5.8%), followed by townhomes (4.6%). Condo prices were flat inthe region compared to a year ago.
Median Days on Market
Homes are staying on the market longer in the Washington region. The median days on market was 12 in August, which is a 4 dayincrease from a year ago. This is the largest year-over-year increase in this metric since December 2021. The median days on market in the region is still significantly below where it was prior to the pandemic.
New Pending Sales Year-Over-Year Change
New pending sales declined by 26.3% in August, which is a bigger year-over-year drop in pending sales activity than in the othermajor metro areas in the Mid-Atlantic. Pending sales of single-family detached homes fell by 28.6% while townhome pending sales plummeted by30.1%. The number of pending condo sales was off by 17.6% compared to a year ago.
Active Listings Year-Over-Year Change
After spiking in July, the number of active listings at the end of August declined compared to a year ago. There were 7,285 total active listings at the end of the month, which is 5.1% compared to last August. Inventory fell 10.1% between July and August.
Showings Year-Over-Year Change
Showing activity continued to fall in the Washington area. In August, there were 107,089 showings regionwide, which is down 27.0% compared to a year ago. Showings dipped 4.2% between July and August.
Home sales fell across the Washington area, with the biggest year-over-year drops in Falls Church City (-35.3%) and Loudoun County, VA (-34.1%). New pending sales also fell compared to a year ago, which indicates that closed sales activity will continue to track below last year’s levels during the fall.
Inventory increased overall in the Washington area in August. In close-in suburbs, supply declined the most compared to last year. However, there were notable exceptions where inventory expanded—Loudoun County, VA (+27.7%), Prince George’s County, MD (+19.7%), and Washington, DC (+4.3%).
Even as buyer activity has slowed, low inventory has led to continued price growth throughout most of the Washington area. The median price rose most quickly in the suburban markets of Falls Church City (+9.9%), Loudoun County, VA (+7.3%), and Frederick County, MD (+6.4%). Median sales prices dipped in Washington, DC and Alexandria City, likely due to the change in the composition of home sales.
Supply is Still Low in the Region
Inventory is still very low across the Washington area. In August, there was just 1.22 months of supply regionwide. In some markets, there is less than a month’s supply. Inventory is greatest in the city, where there is 2.07 months of supply.
Buyers may face less competition, but it is still a seller’s market throughout most of the Washington metro area.
Data provided by Bright MLS.
Bright MLS T3 Home Demand Index
The Home Demand Index captures buyer signals including showing requests, listing views and more to let you know what buyers are doing right now, before they buy. 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 at homedemandindex.com
About Bright MLS
Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS’s innovative tool library—both created and curated—provides services and award-winning support to well over 100k real estate professionals, enabling their delivery on the promise of home to over half a million home buyers and sellers monthly. In 2021, Bright subscribers facilitated $141B in real estate transactions through the company’s platform. Learn more at BrightMLS.com.