An increase in median sales price was once again experienced throughout parts of the Washington, D.C. region in August, according to the Long & Foster Real Estate Market Minute Report.
The median sale price for Washington, D.C. homes was $650,000 in August, which is 1% higher than in July. In August, the average sale price in Washington, D.C. was 100.4% of the average list price, which is similar compared to a year ago. The average number of days on the market was 26, also similar to a year ago.
We asked Larry “Boomer” Foster, president of Long & Foster Real Estate for his comments on what’s happening in the fall real estate market. “While inventory remains low, demand is still high and homes are selling near 100% of their list price, so it’s still a hot market,” said Foster. “Normally in the fall, there are not as many homes on the market as there are from January to Mother’s Day.”
Foster stated real estate is hyper-local, but in and around the D.C. area, even where inventory is shrinking, it’s not shrinking at rates of 50% to 70% as it did in the past – so it’s a lot healthier market for buyers and sellers.
“Home prices have moderated but have not declined,” said Foster. “When we see more homes on the market than demand, then we’ll see prices moderate even more.”
Inflation has increased, causing the cost of goods to rise. We asked Foster for his thoughts on what impact, if any, inflation is having on the housing market. “When we see a rise in the price of goods, homes, and interest rates all at the same time, would-be buyers will become renters,” said Foster. “Unless incomes keep up with inflation, many won’t be able to afford a home.”
The good news is interest rates are still low, creating a window of opportunity to lock in at today’s low rates for the long term, hedging inflation and taking advantage of the home’s appreciation in the years to come.