According to Bright MLS May 2024 market report:
Home prices tie record high and high home prices are sidelining some buyers.
The median sold price in the Washington D.C. metro area was $640,000 in May, up 6.7% from a year ago and tying the record high set in April.
Prices continue to rise despite the significant uptick in inventory.
At the end of May, there were 7,353 active listings throughout the Washington D.C. metro area, which was a 32.0% increase from a year ago. While supply is increasing, more buyers are being kept out of the market by high home prices and elevated mortgage rates.
In May, there were 5,121 closed sales, which was 2.2% lower than last year. The number of new pending sales was down 6.4% year over year. Half of all homes sold in May were on the market six days or less, which indicates that market conditions are still brisk.
The slowdown in new pending sales suggests that the Washington D.C. are housing market may be in a cooldown period this summer.
The biggest challenge in the market right now is affordability. Some buyers—particularly first-time and moderate-income buyers—may sit the market out, waiting for rates to come down later this year. Expect price growth in the region to moderate.