The spring market is typically one of the busiest times for DC real estate. However, this year’s market seems to be experiencing a slower kick-off than normal thanks to high interest rates, high home prices, and low inventory, according to data provided by Bright MLS in its March 2023 report on the Washington market.
The state of the local market is a bit confusing right now: While there was an uptick in closed sales in March compared to February, we aren’t seeing the usual spring pace expected—March 2023 sales were lower than they were a year ago and lower than pre-pandemic sales in March 2019. And although last month’s local median home sale price of $545,000 was down compared to March 2022, prices across the area remain almost 14 percent higher than three years ago, according to Bright MLS. This is due in part to low inventory as people hold on to their homes, possibly to maintain the lower interest rates they’re already locked into: New listings in the area were down 35 percent last month compared to the same time last year, and today’s inventory is about half of what was available in March 2019, says Bright MLS.
Thanks to less listings and less inventory, things are still competitive for the smaller number of buyers that are entering the market right now. The median days on the market for the DC area was nine in March, compared to 20 in February and 30 in January, according to Bright MLS’s data, indicating that people are moving quickly to buy.