https://sputnikglobe.com/20230721/realtors-say-real-estate-prices-in-us-capital-area-to-rise-modestly-demand-to-remain-soft-1112023022.html
Realtors Say Real Estate Prices in US Capital Area to Rise Modestly, Demand to Remain Soft
Realtors Say Real Estate Prices in US Capital Area to Rise Modestly, Demand to Remain Soft
Sputnik International
Real estate prices in Washington and the surrounding areas of the US capital would increase modestly in the near future, accompanied by soft demand and a decline in unit sales, US realtors told Sputnik.
2023-07-21T00:06+0000
2023-07-21T00:06+0000
2023-07-21T00:03+0000
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"Prices will remain stable with general expectations of modest rises. This reflects the conflicting effects of affordability and lessening demand with continuing tight availability of homes and a resilient labor market," Northern Virginia Association of Realtors (NVAR) Communications and Public Affairs Manager Christopher Barranco told Sputnik. Barranco said a price increase from 1% to 2% with notable variances in specific market segments should be expected. "Well-priced units will still sell quickly at or near the original list price," Barranco said. At the same time, demand is expected to remain soft as some households are priced out of the market due to elevated mortgage rates and others recover from the shock of missing out on 3% - or lower - 30-year fixed rates, Barranco said. On average, unit sales for 2023 would decline in the 10% to 15% range compared to 2022, he also said. Speaking of the general situation on the market, Barranco said the prices have remained high because inventory is very low and there still is much demand from buyers. The Greater Capital Area Association of Realtors said in its survey, shared with Sputnik, that the median sold price for residential properties in Washington and its neighborhoods for June was $625,000, representing a decrease of 0.2% compared to last month and a decrease of 1.6% from June 2022. "The average days on market for units sold in June was 21 days, 2% below the five-year June average of 21 days. There was a 12% month over month decrease in new contract activity with 1,633 New Pendings," it said. Earlier on Thursday, the National Association of Realtors (NAR) said in a statement that existing-home sales dropped 3.3% in June to a seasonally adjusted annual rate of 4.16 million. The monthly median sales price exceeded $400,000 for the third time after June 2022 and May 2022, when it was $408,600, the statement added.
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real estate, washington dc, home prices, us realtors
Realtors Say Real Estate Prices in US Capital Area to Rise Modestly, Demand to Remain Soft
WASHINGTON (Sputnik) - Real estate prices in Washington and the surrounding areas of the US capital are due to increase modestly in the near future, accompanied by soft demand and a decline in unit sales, US realtors told Sputnik.
"Prices will remain stable with general expectations of modest rises. This reflects the conflicting effects of affordability and lessening demand with continuing tight availability of homes and a resilient labor market," Northern Virginia Association of Realtors (NVAR) Communications and Public Affairs Manager Christopher Barranco told Sputnik.
Barranco said a price increase from 1% to 2% with notable variances in specific market segments should be expected.
"Well-priced units will still sell quickly at or near the original list price," Barranco said.
At the same time, demand is expected to remain soft as some households are priced out of the market due to elevated mortgage rates and others recover from the shock of missing out on 3% - or lower - 30-year fixed rates, Barranco said.
"Unit sales will decline, on average, though the drop-off will not be as sharp as what we saw in the third quarter of 2022. These unit sales declines will impact Realtor and broker revenues," Barranco said.
On average, unit sales for 2023 would decline in the 10% to 15% range compared to 2022, he also said.
Speaking of the general situation on the market, Barranco said the prices have remained high because inventory is very low and there still is much demand from buyers.
28 November 2022, 17:14 GMT
"Many sellers are not looking to sell because mortgage rates are higher than they were the past few years. Due to limited inventory and high demand, sellers have the upper hand, and their homes are holding in value. Prices are, therefore, not dropping, and buyers have to meet sellers' prices if they want to purchase a home," he said.
The Greater Capital Area Association of Realtors said in its survey, shared with Sputnik, that the median sold price for residential properties in Washington and its neighborhoods for June was $625,000, representing a decrease of 0.2% compared to last month and a decrease of 1.6% from June 2022.
"The average days on market for units sold in June was 21 days, 2% below the five-year June average of 21 days. There was a 12% month over month decrease in new contract activity with 1,633 New Pendings," it said.
Earlier on Thursday, the National Association of Realtors (NAR) said in a statement that existing-home sales dropped 3.3% in June to a seasonally adjusted annual rate of 4.16 million.
"At $410,200, the median existing-home sales price for June was the second-highest price ever recorded - since January 1999 when NAR began tracking the data - and 0.9% less than the all-time high from one year ago of $413,800."
The monthly median sales price exceeded $400,000 for the third time after June 2022 and May 2022, when it was $408,600, the statement added.
