The Washington region’s homes market continues to strengthen as winter gives way to spring, but elevated interest rates, high home prices and constrained inventory are taking their toll on overall sales.
A total of 4,181 properties went to closing across the region in March, according to new data reported April 12 by Bright MLS.
That’s down 29 percent from a year before, with every jurisdiction in the coverage area (except the relatively small city of Falls Church) posting major dips. It also is the 16th consecutive month of year-over-year declines, although the rate of drop-off has moderated since the start of the year.
The median sales price of all homes that went to market during the period also was off, down 2 percent to $545,000 and marking the second time in four months there has been a decline. The single-family market had the largest dip in median price, down 3.4 percent in March after also falling in February.
However, the regional price decline can be attributed in part to proportionally fewer sales in the most high-priced corridors of the region for the month.
“The overall change in the mix of homes sold can influence the median price,” noted Bright MLS.
Areas with higher prices – including Alexandria, Arlington, Fairfax County, Loudoun County and the District of Columbia – saw sales drop-offs that helped to lower the overall median price.
“Despite slower buyer activity, competition is still stiff,” analysts noted. One reason: A lack of homes available for purchase.
“Inventory is roughly half where it was in March 2019 [and] the number of new listings is still far below what would be seen in a typical housing market,” Bright analysts noted.
As a result, buyers are pouncing. The median number of days between a home going to market and achieving a ratified contract was just nine in March, down from 20 in February and 30 in January and from just three days lower than a year before.
“Multiple offers are still common,” analysts noted.
Active listings increased in March for the sixth consecutive month, but the total number of available properties remained only half the inventory of March 2019.
“Prices may fall further in the region, but the very limited inventory will keep any declines modest,” Bright MLS analysts said.
Figures represent transactions in the District of Columbia; Arlington and Fairfax counties and the cities of Alexandria, Fairfax and Falls Church in Virginia; and Montgomery, Prince George’s and Frederick counties in Virginia. Figures represent most, but not all, home sales during the period.
