At Brickfront Properties and Construction, we are observing a significant trend in the DC housing market: it continues to be a market for homebuyers.
A recent Bright MLS report confirms this shift. Home prices in the area rose by a mere 1.6% in June, marking the smallest year-over-year gain since 2023. In addition to moderating prices, the supply of homes for sale in DC, Arlington, and Alexandria has now exceeded pre-pandemic levels for the first time.
Lisa Sturtevant, Chief Economist at Bright MLS, commented on the situation. “More inventory is starting to have an impact on home prices in the Washington, D.C. region,” she said. “With elevated mortgage rates, high home prices, and economic uncertainty, buyers are starting to have more negotiating power in the market.”
While the market has nearly 41% more homes available compared to last June, there hasn’t been a major flood of new properties. The region saw 5,259 new listings in June, which is only 0.9% higher than last year. After an initial surge of homes came online in March, there is little evidence that federal layoffs are prompting a wave of new listings.
The report concludes that this trend is likely to persist. “Home sales activity will likely continue to be slow this summer, and prices will grow more slowly and even decline year-over-year in some local markets.”
So, homebuyers still have the upper hand!
