The pandemic caused bidding wars and inventory shortage in our market seems to be ebbing. Trends over the past couple of months are indicating a cooling down in the DC real estate market, as the region returns to the more traditional seasonal sales – a hot spring, a cold summer, followed by a warmer fall. Interestingly, the rental market has became much more robust over the summer season. These indicators seem to be pointing in the direction of the return of pre-pandemic business.
However, there are still certain niches in the market that remain highly appealing and competitive. Buyers are still searching for single-family homes and there is still a shortage in this inventory meaning single-family homes remain placed in a seller’s market.
Also remaining competitive is the higher-end, luxury market. Through the summer, homes priced at $570K+ sold in about a week, on average, while homes priced under $570K were on the market for just over two weeks, on average. Not only that, price-pressure has been much stronger on homes at the higher end of the market. Over the summer, half of properties with prices of $570K or more ultimately had offers that were above list price. By comparison, only 27% of lower-priced homes ended up selling over list.
(Data per Urban Turf)