What is going on with the Washington DC Real Estate Market?!? It appears someone has “hit the brakes”. Properties are sitting on the market longer and we are seeing multiple price reductions. Many folks are wondering if the local market is heading towards a “crash”, similar to what we witnessed in 2008 – 2009.

Well before you venture down this path of thought, let’s look at the real estate market activity in DC for the month of December 2022.

Key Points to Remember:

1.     DC Market activity & pricing was ABNORMALLY high in 2021 through to May of 2022 (May was it’s peak).

2.     There was a tremendous lack of inventory of properties available for sale in 2021 & 2022. December of 2022 had 1 month of inventory, whereas a balanced market has 6 months of inventory. The supply of available homes is still SHORT.

3.     Property sale prices in December of 2022 only decreased by 1.3% compared to December 2021.

Summary:

The Washington DC real estate market has slowed, but it is STILL extremely strong! Mortgage interest rates are trending down and projected to stabilize within 5% - 6%. Buyer demand is expect to pick up as Spring approaches. Finally, economists claim DC property owners can still expect to see equity gains between 1% - 3% during 2023!

If there is a DC neighborhood that you would like to see highlighted in a Market Update, message me!

To see what types of homes are available in Deanwood: https://youtube.com/shorts/_TTkLBrIYok


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