A January Turnaround: DC-Area Housing Market Bounces Back

• February 10th 2023

by UrbanTurf Staff

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It's only one month but the housing market in the DC region looks like it is beginning to thaw.

Pending home sales and showings in the DC area increased significantly in January compared to December, a report out today from Bright MLS finds. The median home price remained flat, year-over-year, throughout the area. 

"Buyers are back in the DC area housing market," Bright MLS economist Lisa Sturtevant told UrbanTurf. "In January, mortgage rates slid to levels not seen since September and those lower rates enticed back people who had been sitting out. Buyers are taking their time, though. Homes are going under contract in a month, not a week, which is an indicator that the area market is resetting to more normal conditions."

While a market resurgence is happening, activity remains sluggish compared to a year ago when long-term interest rates were much lower. 

"The market rebound reflects growing acceptance of the 'new normal,' which includes higher mortgage rates and longer transaction times," the report stated. "Supply should increase in the weeks to come, though buyers will still find inventory relatively limited. Expect faster recovery in the region’s suburban markets, although the city’s market will also be resilient."

Photo Courtesy Constance Gauthier 

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/a_january_turnaround_dc-area_housing_market_bounces_back/20613.