Happy September friends! I want to start off by saying a special thank you to all of our clients who joined us for our recent client appreciation event! We had an incredible time running through the obstacle course, riding the ponies, playing the yard games, and my personal favorite, participating in our cupcake eating contest. We work with the best clients and love staying connected with you, showing you how much we appreciate you, and continuing to advise you on all your real estate needs. Now let’s dive into this month’s DC area market update!

In general, the market experienced its normal August cool down. While the number of active homes for sale is still below the average, it is 25% higher than last year across all home types, which is good news for buyers.

That cool down was reflected in lower prices, but don’t read too much into that because that also typically happens at the end of summer. It doesn’t necessarily mean prices are falling as much, but that the best inventory has been purchased and the few options that are left usually have a lower average sales prices. Again, good news for buyers, as decreased interest rates and home prices are finally making it more affordable to purchase a home.

Speaking of affordability, Mortgage rates have continued to decrease, sitting firmly in the low sixes. Economists are predicting additional drops in interest rates during upcoming policy meetings, which could continue to bode well for buyers and those looking to refinance their mortgages.

Even though affordability metrics are increasing for buyers, supply is declining. The number of new listings added to the market this month decreased again, which is typical of the seasonal slowdown.

The number of closed sales also decreased this month. Across all home types, the total number of closed sales is down 5% compared to this time last year.

The months of supply is trending upward over the past few months, indicating that the market is continuing to slow. While there is a slight uptrend for townhomes and single family homes, the increase is most notable for condos, which is up nearly 47% compared to this time last year.

The median days on the market is trending upward, meaning that homes are staying on the market longer before going under contract. Again, this is reflective of the typical seasonal slowdown, and is good news for buyers who have struggled with finding a home in the spring due to the competition from other buyers.

The average sales to original list price continued its slight downward trend, and is now slightly below 100%. This means that homes, on average, are selling below their asking price. This is the first time this metric has been below 100% since February of this year.

Across the country, we’ve seen a steady increase in the number of price reductions. As supply has continued to rise, it’s all the more important that your home is priced accurately according to its market value.

As you’ll see from this diagram, pricing your home at market value is important to avoid common seller pitfalls. It’s important to work with an expert Realtor familiar with your market, who can help you make sure you’re getting the highest price for your home with the least amount of hassle.

What does this all mean for you?

If you’re a buyer:

  • With interest rates declining, prices cooling, and inventory rising, you’re in a better position than you’ve been in years.
  • If you bought a home recently, now might be the right time to consider refinancing. It could save you money in the long run. However, refinancing costs vary, so if you’re unsure, reach out to us. We can help you run the numbers and figure out the best move for you and your family.

If you’re a seller:

  • While inventory is rising, it’s still relatively low, so you remain in a strong position. If you’re thinking of selling, now could be a great time, especially with economic uncertainty on the horizon.
  • Even though demand is cooling due to the time of year, we’re still in a seller’s market with plenty of buyers for the available supply.
  • Aso, a little pro tip, the Spring market begins in March. If you want to sell next year and the inventory is low in February, you may decide to put your house on the market in early Spring before everything is green. Since Fall is one of the best seasons for home photography you might want to take photos now. By working with our team, we will send our photographers out now to take free photos so we can use them in the spring if you decide to list before everything greens up.

That’s it for this month. If you or anyone you know is looking to buy or sell a home, or just has some questions, feel free to give us a call and we’d be glad to help you!  We are never too busy for you or any of your referrals.