Hi friends! Fall is in the air, and we’ve got your latest real estate news and advice for the DC Metro area. Let’s jump into the latest numbers, and then I’ll break down what they mean for you—whether you’re thinking about buying, selling, or just keeping an eye on the market.
First up—housing inventory is rising slightly across the DC Metro area.
For buyers, this is great news because it means more options are becoming available. Historically, inventory rises through September before dipping during the winter months and then picking up again in the spring, so we’re right on track with the usual annual trend. Now, we’d like to see inventory hit 5,000 homes to truly meet demand, so we’re not there yet—but we’re heading in the right direction.
Next, let’s talk about prices. You might notice that the average selling price has been decreasing since June—but don’t worry, this is actually a normal seasonal trend. For perspective, the average single-family home price in September 2024 was $923,000. Compare that to last September, when it was $858,000. That’s a 7.5% increase year-over-year, showing that the DC Metro area is still on a solid upward trend in terms of home value.
Even though inventory is rising, we’re not seeing a flood of new listings, so the market conditions remain steady. We’re still getting less inventory than we need to reach that 5,000 home mark, which means demand is still high.
And get this—the average sale price to original list price ratio is just above 100%. That means, on average, homes are still selling above asking price!
Now, here’s something really interesting—the month’s supply chart. This is one of the best indicators of overall market strength because it factors in both supply and demand. In general, less than three months of supply means we’re in a seller’s market, where prices are likely to rise. If it’s over four months, we typically see prices stabilize or even fall. Right now, detached homes and townhouses are at two months of supply—definitely a seller’s market. Condos, though, are edging closer to three months.
But let’s zoom in on condos. If we break it down by region—DC proper, Northern Virginia, and Maryland suburbs—the numbers tell an interesting story. DC is sitting at five months of supply, while Virginia and Maryland are both under two months. This is a huge red flag for DC condos, raising ongoing concerns about property values downtown.
Now, let’s talk about what this all means for buyers, sellers, and investors:
For buyers, with inventory on the rise, and interest rates lowering, now’s a great time to start your search. There are more options available, and with prices leveling off, you have more negotiating power now that the market has become more favorable for you.
For sellers, it’s still a seller’s market, especially for single-family homes and townhouses, where prices are holding strong. For now, buyers who are still willing to pay above asking price to secure their dream home. And if you own a condo in DC proper, it’s an important time to consider your long-term strategy given the increasing months of supply there.
For investors, now might be an interesting time to consider the DC condo market. With five months of inventory and slower price growth, this could signal an opportunity to buy at a lower price, especially if you’re thinking long-term and looking for deals in the heart of the city.
Whether you’re thinking of buying or selling, understanding these trends can help you make the best move for your future. No matter what your real estate needs are, we are here to help and want to serve you. If you have any questions about how this impacts your specific neighborhood? Reach out to my team and we would be happy to grab coffee to discuss your needs in a no-obligation consultation.