In 2023, the DMV region’s housing market saw fewer home sales compared to the previous year. This was not due to a lack of interested buyers, but because of a shortage of available homes on the market.
Despite a 23-year high in mortgage rates during the fall, demand remained strong. The housing market is still undergoing a transition post-COVID-19, challenging traditional measures of a “normal” market.
A few key observations:
- Monthly home sales in the first half of 2023 lagged behind 2022 levels due to a slowdown caused by rising mortgage rates in the second half of 2022.
- Although mortgage rates were higher in 2023, buyers adjusted their expectations, resulting in a closer alignment of monthly sales activity to 2022 levels in the second half of the year.
- Inventory increased from pandemic lows, but at 27,592 active listings at the end of 2023, it was still below normal levels and about 1,000 fewer than at the end of 2022.
- The region’s housing market has experienced a long-term decline in inventory over the past 15 years, influenced by factors such as property investments in 2009-2010, homeowners staying in their homes longer, and reduced new-construction activity. The supply challenge intensified during the pandemic but had been a market characteristic for some time.
Overall, the housing market in the DMV region is undergoing a redefinition of “normal,” with expectations of fewer new listings, lower inventory, and a faster pace of sales as long-term impacts from the pandemic response and shifting demographics continue to shape the market.
Actionable Advice for DMV Agents:
Success in this market hinges on your adaptability, proactive strategies, and commitment to meeting the evolving needs of both the market and your clients. Here are five things you can focus on right now to help you:
- Stay informed about current market trends.
- Leverage the Side App for efficient property showcasing.
- Build a robust online presence by sharing niche marketing content on Instagram, YouTube, and your website.
- Nurture client relationships through excellent communication.
- Diversify your marketing channels and adapt your strategies to align with market conditions.