DC Metro Market Update: October 2024 Real Estate Trends

As we move into the last quarter of the year, the DC Metro real estate market continues to showcase dynamic changes that impact both buyers and sellers. Here’s a closer look at the September 2024 data, along with what it means for anyone looking to enter or make moves in the market.

October 2024 Highlights

The DC Metro area has seen notable shifts in pricing, inventory, and overall buyer and seller activity compared to last year. Here’s a snapshot of the most important trends:

1. Total Sold Volume - The total volume of homes sold in the region reached $27.8 billion, marking a 4.5% increase from 2023. This shows continued demand and interest in the market, signaling strong performance despite fluctuating economic conditions.

2. Home Prices on the Rise

   • Average Sold Price: Homes are selling at an average of $737,751, a 6.5% increase from last year.

   • Median Sold Price: The median price also rose to $610,000, reflecting a 6.2% increase. For sellers, this indicates that home values continue to appreciate, making it a favorable time to consider listing.

3. Days on Market - Properties are moving fast. The average days on market dropped to 22 days, a 4% decrease from last year. Homes in high-demand areas like Northern Virginia are particularly sought after, with many selling within 30 days or less.

4. Inventory Growth - Inventory in the DC Metro area has grown by nearly 19% year-over-year, especially in the townhome market, providing more choices for buyers. The rise in inventory is partly due to motivated “move-up” buyers who are seizing opportunities to trade up in the current market.

5. Sale Price to List Price Ratio - The average sale price to list price ratio sits at 100.3%, indicating that homes are selling very close to the asking price—a sign of continued demand and buyer competition.

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Economic Factors Influencing the Market

Economic trends play a significant role in the real estate market, with inflation nearing the Federal Reserve’s target and potential interest rate cuts on the horizon. These shifts could make homeownership more affordable, especially if mortgage rates begin to ease. However, mortgage rates remain volatile, influencing buyer behavior; many buyers are quick to act during periods of temporary rate relief, which could bring more activity into the market if conditions improve.

Buyer and Seller Takeaways

• For Sellers: With prices continuing to rise and homes selling quickly, sellers are in an advantageous position. Now might be the perfect time to list, as demand remains high and inventory, while growing, is still relatively limited in many popular areas.

• For Buyers: Although the market is competitive, the increase in inventory, especially in the townhome market, offers more options. Staying informed about interest rate changes can help buyers capitalize on affordability improvements and seize opportunities as they arise.

  
  

Outlook for Fall 2024

As we enter the fall season, we might see more inventory and steady buyer activity if interest rates soften further. Price appreciation is expected to continue but may slow slightly, creating a balanced environment for buyers and sellers alike.

Get In-Depth Data and Free Resources!

For those who want a deeper dive, download our complete October 2024 report HERE, and get our FREE home buyer and seller guides to help you navigate today’s market with confidence.