December 2023 Monthly Housing Market Trends Report for Arlington, VA, Washington DC and Montgomery County. This is our monthly update and insights based on year over year numbers on these three markets. What do the numbers mean to you? How can they be translated to your current needs when buying or selling?
A Surprisingly Strong Market in December Median sale price rose 8.1%, fastest growth since spring 2022 While home sales activity fell seasonally in December, prices were up strongly in the Washington DC metro area. There were 2,678 new pending sales, which was 1.1% lower than a year prior. The number of new pending sales was down by 17.8% between November and December. Monthly pending sales were at their lowest level since 2008. Slower sales in December reflects the fact that there are few fresh new listings coming onto the market. In December, a total of 2,217 new listings came onto the market throughout the Washington, D.C. metro area. New listing activity is down 20.5% compared to December 2022, and dropped 32.2% from November’s level. This is also the lowest level of monthly new listings in more than two decades. At the end of 2023, there was a total of 4,732 active listings in the D.C. metro area. Inventory has been falling for nine consecutive months and supply is only 56% of what it was in 2019. The historically low number of new listings is the primary reason home prices continue to rise. In the Washington, D.C. metro area, the median home price was $554,950, which was up by 8.1%. Home prices were up strongly across housing types, and prices rose in all local markets except the District of Columbia. Bright MLS T3 Home Demand Index According to the Bright MLS T3 Home Demand Index (HDI), market conditions dropped from last month, moving further into the Limited category. The HDI for the Washington, D.C. metro slid from 57 to 45 for this month. Demand remains lower as the holiday season wraps up and prices continue to rise on top of lower inventory. The HDI should improve in the coming months.