DC-Area Home Prices See Fastest Growth in 18 Months As Supply Plummets

• January 11th 2024

by UrbanTurf Staff

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While most metrics related to the regional housing market were down in December, one continued to go up. 

The median home price in the area rose to $554,950, up 8.1% from December 2022, according to a report out today from Bright MLS. Home prices increased for every property type, with attached homes (12.2%) leading the way, followed by condos (9.1%) and then detached homes (7.5%). 

“It was definitely a little bit of a surprise to see prices rise so fast in December,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “Lower mortgage rates enticed more buyers, but they are still finding a dearth of inventory. Prices will continue to rise until there is more inventory.”

The only jurisdiction that did not see home prices rise in December was DC proper (-4%). The fastest price growth among the largest counties was in Frederick County, MD (+15.3%), Fairfax County, VA (+8.9%), and Loudoun County, VA (+8.7%).

Home prices have now increased in the region for seven months in a row. The rise can largely be attributed to there being so little for buyers to choose from. 

"New listing activity is down 20.5% compared to December 2022, and dropped 32.2% from November’s level," the Bright report stated. "This is the lowest level of monthly new listings in more than two decades."

Thumbnail image of home that sold on Capitol Hill last year.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/dc-area_home_prices_see_fastest_growth_in_18_months/21848.