Washington, DC Metro Area Housing Market Analysis - September 2024

The Washington, DC metro area housing market in September 2024 presents a stable Median Sales Price of $562,250, reflecting a negligible year-over-year change of -0.0%. In contrast, the Median List Price has increased by 8.4% year-over-year, reaching $585,000. This divergence suggests a potential gap between seller expectations and buyer willingness, which could influence future market dynamics.

Price Per Square Foot Trends

The median Price Per Square Foot has seen a modest increase of 2.6% year-over-year, now standing at $280.71. Meanwhile, the Median List Price per square foot has risen by 5.7% to $305.51. This indicates a stronger upward pressure on listing prices compared to actual sales, which may reflect sellers' optimism or a shift in market demand towards higher-priced properties.

Sales and Inventory Dynamics

The number of Homes Sold in September 2024 was 4,141, showing a slight decline of 0.2% compared to the previous year. However, Pending Sales have surged by 9.2%, totaling 4,995, suggesting a robust pipeline of future transactions. New Listings have increased by 5.0% year-over-year, reaching 5,681, while inventory has grown by 7.8% to 9,929 units. These figures indicate a more active market with increased supply, which could potentially ease pressure on prices.

Market Supply and Demand Indicators

The Months of Supply have risen significantly by 20.0% year-over-year, now at 2.4 months. This increase suggests a shift towards a more balanced market, providing buyers with more options and potentially reducing the urgency to make quick purchasing decisions. The Median Days on Market have increased by 5.0% to 35 days, further indicating a slight cooling in market pace.

Sale to List Ratios and Price Adjustments

The average sale to list ratio remains strong at 100.0%, though it has decreased slightly by 0.2% year-over-year. The percentage of Homes Sold above list price has declined by 3.6% to 36.8%, indicating a reduction in competitive bidding scenarios. Price Drops have increased by 1.6%, now at 26.4%, suggesting that sellers may be adjusting expectations in response to market conditions.

Market Activity and Off-Market Trends

The percentage of homes going Off Market Within Two Weeks has decreased by 2.8% to 49.3%, reflecting a slower pace of transactions. This trend, combined with the increase in inventory and Months of Supply, points to a market that is gradually shifting from a seller's market towards a more balanced environment.

Conclusion

Overall, the Washington, DC metro area housing market in September 2024 exhibits a complex interplay of stability in sales prices, rising list prices, and increased inventory. While the market remains active, with a strong pipeline of Pending Sales, the increase in supply and slower transaction pace suggest a potential easing of competitive pressures. Buyers may find more opportunities and negotiating power, while sellers may need to adjust expectations to align with evolving market conditions.