One thing I have learned about the DC Metro real estate market over the last 17 years is that change comes on suddenly.
We are certainly seeing this playing out in today's market.
It is important to note that what the public hears is much worse than what is happening in the real estate market.
Buyers are worried about the economy.
Sellers are nervous about finding their next home.
All in all, the DC Metro area remains resilient. The first quarter of 2023 will be a buyer's market. However, that could quickly change with the Spring market.
2022 Dc Metro Housing Market Recap
With sales down over 35% year-over-year, the fourth quarter of 2022 was abysmal.
The high home prices, lack of inventory, and soaring interest rates kept many would-be buyers at home. In addition, we experienced economic uncertainty and a volatile stock market, bringing the market to a standstill.
Wouldn't all of this be a good thing for buyers?
Generally speaking, yes. However, more often than not, sellers held firm to their asking price and pulled listings unless they absolutely must sell.
Homes that did sell, sold for less than they would have sold for a year earlier, but not by much if you back out the appreciation seen in Q1 and Q2 of 2022.
The good news for buyers is there is little competition. Less competition means buyers can negotiate a lower price, closing assistance, and inspection repairs, concessions – not to mention getting a home.
Today's Housing Market
So, where are we now?
Over the last few weeks, we have witnessed a remarkable uptick in buyer activity, including multiple offers on listings that sat dormant for months, home tours, and open house traffic.
Interest rates have settled below 6%, and many buyers who took a break from the market are jumping back in.
Every market and product is different, from new-construction single-family homes to DC condos and everything in between. If you are interested in an analysis of your home, future home, or want to chat, please feel free to reach out to me. I am here to help.
On a personal note, our family has buckled down our spending, increased our cash position, and generally planned for the worst since summer. If the worst does not materialize, we will be in our strongest financial position yet, and I suspect many smart money minds are doing the same.
I hope you are having a great start to 2023!