Hey everyone, here we are. The election is behind us, but where do we stand now? There are a lot of mixed emotions out there, and we get it. One of my favorite sayings, which I have to remind myself often, is: “What you focus on grows.” I know that when I focus on the negative, it gets bigger in my mind and can quickly feel overwhelming. But when I focus on the positive and all I have to be thankful for, that also grows and helps counteract all of the doubt and fear I can experience. So, for this month’s market update, we’re going to focus on the positive and bring you to a better place. And if our smiling faces don’t work,  we’ll wrap up with some adorable dog videos to lift your spirits. Let’s dive in and see how the local real estate market is doing.

The number of homes actively for sale is actually increasing. Normally, we see a drop in listings at this time of year, so this is great news for buyers. While inventory is still lower than historical norms, any increase is a good sign. More homes on the market means more options for those looking to buy.

Average home prices increased last month across all home types in the region, showing strong demand. These price increases also align with the positive long-term trend we’ve seen in the past decade, indicating continued steady appreciation in home values throughout the DC metro area.

The number of new listings coming on the market has also increased slightly compared to this time last year. While we usually see inventory dip heading into January, we have seen a year-over-year increase. This additional inventory is a welcome sign for buyers who are looking for more options.

The average sales price to original listing price ratio for homes in the DC metro area remains above 100%, which means homes are generally selling at or above the asking price.

But if we break it down by area, we see some differences. In the suburbs of Maryland and Virginia, the ratio is around 101%, while in DC proper, it’s been trending between 98-99% for the past two years. So, there’s slightly softer demand in the District.

With rising inventory throughout the region, we are seeing the “months of supply” increase slightly—more good news for buyers. We are still below the three-month mark, though, so we remain in a healthy real estate market with signs of more normalization.

A few other positive takeaways:

  • According to the Bright MLS, inventory in the mid-Atlantic region is expected to grow by about 9.3%, and home prices are expected to remain stable. So, buyers will have more options without drastic price hikes.
  • While some cities post-COVID have seen home price declines, DC has remained resilient. In fact, our local MLS reports a 1.8% price appreciation across the DC metro area this year, which is great for long-term stability.
  • Mortgage rates are expected to drop in 2025, improving affordability for buyers.
  • On top of that, we’re seeing job growth and a return to office work in DC, which is boosting the housing market. Realtor.com expects a modest bump in sales as more businesses return to in-person operations. If you’ve been thinking about selling, there’s no better time than now.

To wrap up, there is a lot of good news out there… employment levels remain strong, and if you have retirement investments, they’ve likely performed well since the election. We live in one of the greatest countries, with endless opportunities. If we’re willing to put in the work, we can make a positive impact on our communities, schools, and neighborhoods. So let’s get out there and make it happen!  And if that doesn’t do it for you, maybe this will…