Real Estate Market: Washington, DC’s 2023 in Review

by Brandon M. Scott

 

Urban areas are seeing a resurgence in demand, while suburban regions continue to attract families seeking more space. Especially in DC, I have seen and spoken with a fair number of agents and families that have left DC for suburban living. Yet, the desire and demand to live in the nation’s capital attracts prospective renters and buyers from near and far.

 

All of 2023 was centered around interest rates. Everyone paid more attention to rates than home prices, although both are important when buying a home. Looking at median home prices for 2023 there are some notable highlights from the data.

 

Let’s spotlight Washington, D.C. overall

 

With over 1,600 active listings and a median price around $625,000, D.C. remains a hotbed for real estate activity. For 2023, 6,636 homes sold from January to December. The market continues to be fluid, with properties moving faster than last year.

Looking across the Washington, DC market, I’ve picked out summary highlights regarding median sale prices by zip code and community for 2023:

– Woodley/Cleveland Park (20008) experienced a notable surge in the median sale price in December 2023, jumping by 70.2% to $1,587,500 compared to December 2022. Year-to-date, the increase was more modest at 4.4%.

 

– Georgetown/Burleith (20007) saw a downturn in December’s median sale price, dropping by 16.3% to $1,390,000 from the previous year. However, the overall year-to-date median price did increase slightly by 3.7%.

 

– Friendship/Chvy Chs (20015) had a slight increase in December 2023 with a 1.7% rise in median sale price. However, there was a slight year-to-date decrease of -1.7%.

 

– Cathedral Hts/Au Pk (20016) showed a robust growth, with the median sale price in December up by 44.2% year-over-year, and a significant 20.6% increase for the year-to-date median sale price.

 

– Howard U./Shaw (20001) and Capitol Hill/North (20002) both enjoyed an increase in their December median sale prices by 9.7% and 16.5%, respectively, with modest year-to-date changes.

 

– Capitol Hill/South (20003) had a slight decrease in December’s median sale price by -2%, with a more notable year-to-date decrease of -7.3%.

 

– West End/Foggy Bottom (20037) saw a significant decrease in December’s median sale price by -20.4%, but an 18% increase in the year-to-date median sale price, suggesting a volatile market throughout the year.

 

– Anacostia/Hillcrest (20020) had an impressive year-over-year growth in December’s median sale price by 31.1%, despite a -4.8% dip in the year-to-date median.

 

– Southwest Waterfront (20024) and Downtown (20036) experienced the most significant decreases in December’s median sale prices, with -27% and -23.5% respectively, indicating a cooling in these markets.

 

It is worth noting that some areas like Woodley/Cleveland Park and Anacostia/Hillcrest saw remarkable spikes in their median sale prices, signifying high demand or possibly a shift in the market dynamics for those neighborhoods. On the other hand, areas such as Southwest Waterfront and Downtown have seen significant drops, which could indicate a buyer’s market or adjustments in local market conditions.

 

For home buyers and investors, these trends are critical for identifying areas with growing value and those that may offer more negotiable pricing. As always, individual circumstances vary, and I am here to provide tailored advice and support for each client’s unique real estate goals.