The D.C.-area housing market has entered what is being referred to as a “dysfunctional” phase, characterized by high-interest rates and historically low inventory levels. Avi Adler, president of the Greater Capital Area Association of Realtors, describes it as one of the most unique markets he has ever seen. The lack of inventory has resulted in multiple offers for properties, creating competition even in a potentially slowed market.
However, recent statistics from Bright MLS show a decline in new contracts and in-person showings. In the week ending September 3rd, new contracts were down 19.9% compared to the previous year, and in-person showings were down 26.4%. In the District and Montgomery County, new listings were down by 15.2% and 9% respectively at the end of July.
Despite this decline, real estate agents in the D.C. area are remaining busy due to the high demand and limited supply. The number of licensed and practicing real estate agents is expected to decrease by 15% nationally, but the impact may be less significant in the D.C. area, which is known for its transient nature and government presence. While there may be a slight reduction in membership, it is not expected to reach the same levels seen at the national level. The National Association of Realtors reports a 7.5% decrease in member realtor agents in the District, a 4.3% decrease in Maryland, and a 2.9% decrease in Virginia.
Despite the unique challenges and market conditions, the D.C.-area housing market remains competitive. Buyers and sellers should be prepared for potential market fluctuations, as the high demand and low inventory continue to drive competition.
– Greater Capital Area Association of Realtors
– Bright MLS
– National Association of Realtors