Interest rates

Interest rates trigger slowdown in DC home sales

A house for sale in DC Photo: Ting Shen/Xinhua via Getty Images

In September, the average DC home took over a month to sell, according to the latest data from the Greater Capital Area Association of Realtors. The trend is a continuation of a market downturn that began over the summer.

State of play: Although buyers have gained a little more control as the market has normalized in recent months, interest rates (which have reached a 20-year high) have weakened their purchasing power and caused homes stayed on the market longer.

Yes, but: “It’s not like the market is dead or people are singing the blues,” Maxwell Rabin, senior vice president of TTR Sotheby’s International Realty, told Axios. Rabin says he still sees solid activity.

By the numbers: Homes spent an average of 34 days on the market last month, according to GCAAR. This is compared to 30 days in August and 28 days in September 2021.

  • The number of completed sales in DC was down 21.3% from August and 18.8% from September 2021.
  • The median DC sale price was $619,500 last month, down 4.6% from August and up 1.1% from September 2021.

Good news for buyers: New DC listings soared 78.1% from August to September, which can in part be attributed to the early fall when activity picks up after the slower summer season.

Zoom out: The data shows that Montgomery County is experiencing a similar downturn, with fewer closed sales and an increase in average days on market.

And after: Real estate trends are seasonal, so expect to see less activity towards the end of the year as potential buyers and sellers focus on the holiday season.