By Brandon Scott
The first quarter of the year is off to a telling start and the data seems to support that DC has two curiously interesting trends, or the tale of two Buyers.
January has been a notable month for our market, showing a dynamic interplay of factors that both buyers and sellers need to be aware of. A total of 930 units were listed with a median listing price of $624,950, reflecting the high quality and value of properties available in our region. On the sales front, 350 units were sold with an average sold price of $835,142, underscoring the robust demand for homes in our capital.
Conversely, we’ve seen a total of 350 units close, emphasizing the active nature of our market. With a total value of $292.3 million, reflecting the high demand and premium quality of homes in our area. The median sold price stood firm at $605,000, offering a diverse range of opportunities for both buyers and sellers.
A key takeaway is the average sold price to original price ratio of 95.14%, indicating that homes are selling close to their asking prices, a testament to the strength of our market. This metric is crucial for both buyers to understand the competitiveness and for sellers to set realistic expectations.
More interesting is how those 350 buyers decided to spend their hard-earned money to purchase a home. That answer comes when looking at the break down or count of sold homes by their price range. That data shows that 26% of units sold were between $300,000 and $499,999 – which is the range for first-time home buyers and affordable housing units. Conversely, 19% of units sold were priced between $1 million and $1,999,999.
This chart helps visualize the distribution of closings across different price segments in the Washington D.C. real estate market, with a noticeable concentration in the higher price ranges, particularly in the $1,000,000 – $1,999,999 category. However, when looking at the data more holistically a story is being told around consumer demand with first-time buyers leaving a mark in the market. At least, there’s a clear indication of a healthy demand across price points.
The year’s performance will be dictated by mortgage rates. Today, all signs point to more people entering the real estate market, but there are things to consider. Those entering the market should note that, rates are driving anticipation. There are legions of buyers in anticipation of more favorable rate, and not all of them are first-time home buyers. Many are repeat buyers and investors. Think about this, a growing pool of baby boomers are rightsizing. Their need for less space and stuff means they’ll trade in their million-dollar home for a smaller, mid-priced home. Plus, many of them will be cash rich from the sale of their previous property. Finally, investors of all calibers, mom and pop investors to billion-dollar hedge funds are employing buy and hold strategies creating communities of rentals.
The real estate gates are being loosened as external factors soften. The initial firsts of any wave are beginning to present themselves and take advantage of a bullish market. All of this leave us with an untold tale about DC’s real estate in 2024.
Brandon Scott is a licensed real estate agent in Washington, DC, Maryland and Virginia. His license hangs with Keller Williams Capital Properties in DC. He’s been involved in the mortgage finance industry for the last 22 years in various fields. You can reach him by email at [email protected]. Subscribe to his YouTube Channel at RealTeaDMV