Real Estate

DC Home Prices Actually Dropped in July

But don't get too excited. The decline is normal for this time of year.

Photo by Jeff Manes/iStock.

Flashback to July 2020: Covid lockdowns had hampered the typically busy spring buying season, leading to tons of pent-up demand. By summer, Washingtonians were finally feeling ready to venture out of quarantine and into the housing market. The result was one of the craziest months ever for DC real estate, with prices breaking records across the area.

While the Washington market is still incredibly competitive and expensive, July 2021 was more normal. According to the latest stats released by multiple-listing service Bright MLS, the median sales price for the DC-metro area fell slightly—by 2.7%—compared to June. New listings dropped more than 17% and the number of homes that went under contract fell nearly 11%. Homes also spent seven days on the market, up from six days in June.

The slowdown is typical for summer, when Washington tends to empty out, and many would-be buyers and sellers put their plans on hold until fall. Even so, prices are up year-over-year. Though the pace of the market is less frenzied than last summer, the July 2021 median price of $550,000 for the whole DC-metro is 6.6% higher than July 2020. In the city of DC, the median price last month was $652,500, a 2% increase compared to the same time last year.

In other words, thanks to a slight summer lull, buyers might have a bit more time to get their offers in, and may not have to compete against quite as many opposing bids. But it’s still tough out there.

 

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Senior Editor

Marisa M. Kashino joined Washingtonian in 2009 as a staff writer, and became a senior editor in 2014. She oversees the magazine’s real estate and home design coverage, and writes long-form feature stories. She was a 2020 Livingston Award finalist for her two-part investigation into a wrongful conviction stemming from a murder in rural Virginia.