Median Sale Prices Increased Across the Washington, D.C. Region in May

Median sale prices rose throughout most of the Washington, D.C. region in May, according to the Long & Foster Real Estate Market Minute Report. Cleveland Park and Kalorama had the most dramatic rise with a 102% increase, while Adams Morgan and U Street had a 21% decrease.

The number of homes sold declined across the region, with Cleveland Park and Kalorama showing the biggest drop with a 73% fall, followed by Foggy Bottom and West End with a 71% fall. Inventory also decreased throughout most of the region, with Logan Circle and Dupont having a 49% decline. While Southwest and Waterfront had a 22% rise.

The Long & Foster Real Estate Market Minute report provides data for 15 neighborhood areas within Washington, D.C.

Washington, D.C. Market Minute Chart May 2020

“There are many positive trends that have occurred in the market, from the historically low mortgage rates to increased demand,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. Though the stock market is still volatile, the real estate market seems to be holding steady.

With mortgage rates dipping below 3% for the first time ever, more qualified buyers are able to enter the real estate market. This is ratcheting up the demand for homes, considering the already tight inventory. However, this is indicative of a healthy market as many people who were hesitant to buy during the earlier months of the COVID-19 (coronavirus) pandemic are now expressing interest again.

These inventory challenges have led to an adjustment in the market, with the spring market being pushed back into June and July, as opposed to the typical April and May timeline. The increase in home showings over the past weeks are also a strong indicator that the real estate market is picking back up, as people start to express more interest in home buying.

“With the increase in home buyers, people need to make sure they’re committed and get pre-qualified instead of window-shopping,” Foster said. Being prepared will ensure you get the home you want, since competition is high. Even though it’s a seller’s market, home sellers also need to prepare by decluttering, staging and cleaning their home for showings.

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.