DATA AS OF March 6, 2023
February 2023 Market Report
Washington Metro
February 2023
vs. February 2022
3,169
-24.7%
$535,000
+1.7%
20
+13 days
New pending sales
3,922
-28.3%
New listings
3,927
-36.2%
Active listings
5,002
+35.4%
Months of supply
1.00
+78.6%
103,136
-36.5%
Washington Market Key Findings Closed sales
Slow Buyer Activity in the Region Reflects Higher Mortgage Rates in February Low Inventory Has Also Constrained Activity and Pushed Prices Up
Median sales price Median days on market
The lead-up to the spring market is bumpy in the Washington, D.C., metro area, as higher mortgage rates created headwinds in the market. The number of new pending sales in the D.C. region was higher than during January, but the February new pending sales was at its lowest level since 2014. New listing activity in the Washington, D.C., region hit the lowest point in more than two decades in February. Many existing homeowners are sitting out the market because they do not want to have to give up a rock-bottom mortgage rate. Overall inventory rose from last year, but the number of active listings is still 40% lower than it was in February 2020.
Showings
Bright MLS T3 Home Demand Index According to the Bright MLS T3 Home Demand Index (HDI), market activity in the Washington, D.C., region bumped down slightly from February’s reading of 74 to 72 in March. While activity is still slow, the spring buying season typically has stronger interest than the first quarter of the year.
Low inventory is the primary reason prices continue to rise across most of the Washington, D.C., region. The median price in the metro area rose 1.7% compared to a year ago. The region’s median price is now nearly 20% higher than it was three years ago.
The index for the Washington, D.C., metro area is down from 109 a year ago.
Home Demand Index
Bright MLS T3 Home Demand Index April 2021 - March 2022
170
April 2022 - March 2023
150 130 110 90 70 50
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Market Outlook In February, buyers and sellers geared up for the spring market. However, higher mortgage rates and economic uncertainty have muted housing market activity this year. Mortgage rates had begun to fall at the beginning of the year, but rates moved upward in February, and economic data suggests they may move higher in the weeks ahead. While the road may be bumpy, expect housing market activity to pick up in March and April. Fewer buyers will be in the market, but there will also be fewer sellers. As a result, home prices in the Washington, D.C., area should be stable or continue to increase.