by Brandon M. Scott
Washington, DC’s real estate market has always been a focal point for potential homeowners and investors alike. It’s the Nation’s Capital, the seat of politics, so there has always been an intrinsic demand to live in DC. The global market dynamics in 2022 and 2023 have shown some fluctuations in our local market but not as much as most people like to think.
As I reflect on the blend of economic trends and consumer preferences, it is easier to see how consumer response have shown up in 2023. From 2022 to 2023 there was a -4% decrease in the median sold price, from $656,000 to $630,000, in DC. This correction reflects consumer response to rates, leaving a looming question regarding consumer sentiment to a rise in DC home prices.
The Highs and Lows: Median Sold Prices in 2022 and 2023
An intriguing aspect of the real estate market is the median sold prices across different locations. In 2022, areas like Adams Morgan and Brentwood witnessed a decrease in median sold prices, whereas neighborhoods like Anacostia and Barry Farms saw a surge. This trend continued into 2023 with notable shifts in areas like American University Park and Colonial Village, indicating a volatile market susceptible to a variety of influencing factors.
For the highs and lows, there are two subdivisions to highlight, based on the percent change year-to-date of their median sold price, Watergate, Washington, DC saw a -59.7% decrease in the median sold price from $1,800,000 to $725,000. Conversely, Barry Farms, Washington, DC saw the median sold price increase 54.4% from $270,000 to $417,000.
Alone, this statistic should be telling. Especially considering the history of Barry Farm. Originally created in 1867 as a settlement for African American who fled enslavement during the Civil War and, later a community divided by local and the federal government, as well as private developers.
Days on Market: A Reflection of Market Tempo
The number of days properties stay on the market before being sold is a crucial indicator of the market’s health and demand. In 2022, areas like Brightwood and Brookland experienced a decrease in days on the market, hinting at a growing demand. Conversely, other locations saw an increase, suggesting a slower market. Moving into 2023, we observed significant changes in neighborhoods like Cathedral Heights and Chevy Chase, indicating shifts in buyer interest and market momentum.
In fact, for DC proper, the days on market increase 42.9% from 14 days to 20 days, year-to-date. From 2022 to 2023.
The Pulse of New Listings in 2023
New listings are a vital sign of a market’s vibrancy. In 2023, certain locations in Washington, DC, stood out with the highest number of new listings, showcasing areas of growing interest and development. On the other hand, some neighborhoods recorded a drop in new listings, reflecting a possible stabilization or shift in housing trends.
For all of DC, 11,313 new listings have been added through December 6, 2023. Compared to 2022, that is a -16.2% decrease from 13,496.
The real estate market in Washington, DC, is as dynamic and diverse as the city itself. The year-to-year comparison between 2022 and 2023 highlights the fluid nature of this market, influenced by various economic and social factors. Understanding these trends is crucial for anyone looking to invest or find a home in this vibrant city.
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