Prospective home-buyers are headed back into the region’s real-estate market with the start of the new year.
“There was a sharp downturn in the metro-area housing market at the end of 2022, but that slump was brief,” said Lisa Sturtevant, chief economist of Bright MLS, parsing January sales data reported Feb. 10.
A total of 2,465 properties went to closing across the metro area in January. While down 36 percent from a year before, the number of pending sales (transactions in the pipeline but not yet consummated) saw only a 19-percent year-over-year decline.
“The market rebound reflects the growing acceptance of the ‘new normal,’ which includes higher mortgage rates and longer transaction times,” Sturtevant said. “Supply should increase in the weeks to come, though buyers will still find inventory relatively limited.”
Figures represent sales 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 Maryland.
The median sales price for the month – an even $500,000 – was up 0.2 percent from a year before following a decline reported in December. Price increases were more robust in the condominium market, and overall price increase in the suburbs were offset by lower prices in the District of Columbia itself.
“Expect faster recovery in the region’s suburban markets, although the city’s market will also be resilient,” Sturtevant predicted.
But there is still some work to do. Year-over-year transactions have been down 14 straight months (and 16 out of 17), reflecting the robustness of the market from mid-2020 right through early 2022 before transitioning into a weaker environment.
The big question at the moment: Will sellers decide to put their homes on the market during what traditionally is the peak of the annual market in spring-summer, or will they continue to sit things out and await developments?
Particularly in the single-family segment, inventory remains less than half what it was three years ago. That has helped keep prices up, but it also has constrained the options for purchasers.
Figures represent most, but not all, sales during the period. All January 2023 figures are preliminary and are subject to revision.
