By Brandon Scott

We are on the heels of the spring market and all signs point to more activity via an improvement in rates. In the last 24 hours Jerome Powell, Chair of the Federal Reserve, indicated that rate cuts are on the horizon pending economic data. I expect this to hit like a new beginning for buyers and sellers. My hope is that keeping an eye on the market will allow you to determine the best time for you to enter the market. Let’s discuss the February 2024 DC real estate market.

 

Active Market Overview

 

The market is bustling with opportunities for both buyers and sellers. With a wide range of properties listed – from cozy apartments to spacious detached homes – there’s something for everyone. The diversity in structure types and ownership interests highlights the adaptability of our market to meet various preferences and needs. When it comes to active properties, home you can select to buy, here’s what the data shows – in February 2024, there were 2,098 active listings, worth just over $2 billion. The median sale price was down to $600,000, while the average adjusted north to $958,000.

 

Of the properties for sale, 61% (1,286) had been on the market for 60 days or less. When looking at activity by price point, there were 309 people selling their home between $1 million and $1,999,999. When compared to other price points, 252 homes were for sale between $300,000 to $399,999. Between $400,000 to $499,999, there were 292 homes that were for sale.

 

Pending Activity Insights

 

The number of homes moving from active to pending status indicates a healthy demand in our market. This transition phase is crucial for understanding market momentum and forecasting future trends. For sellers, the pending activity underscores the potential for successful sales, while buyers are reminded of the competitive nature of the market.

 

The data tells a story of a city where high cost, luxury properties continue to move in high demand showing little resistance to rates. Conversely, other price ranges show half or less of the volume. Of the 365 pending properties, 77% (284) were on the market for 60 days or less. There were 81 properties priced at $1 million to $1,999,999 compared to the next highest price range $300,000 to $399,999 with 44 pending properties.

 

Closed Activity Highlights

 

Reflecting on the past month’s closed transactions provides us with valuable insights into the market’s performance. The range of sold prices and the consistency in closed activity (homes that sold) demonstrate a robust market environment. This success is a testament to the vibrancy of our local real estate scene and the confidence of both buyers and sellers in achieving their real estate goals. I think this also tells the story of the new DC, regarding home prices. There were 469 properties that sold in February 2024. Those properties total value was about $372 million. This brought the median sale price to $600,000 and the average to $793,000. Of all the properties sold, 70% of them were on the market for 60 days or less. Those that purchased a home used a conventional loan 60% of the time, in February 2024, compared to 2% FHA and 3% VA loans, respectively.

 

 

Our real estate market will make you feel one of two ways: you’ll feel defeated, or you’ll see the opportunity. Rarely are the answers in life easy or straight forward; however, there is a pathway and the data shows that. The tale of two cities shows the stark difference in price point but the reality that appreciation is alive and well, you only need to decide to participate.

 

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