Housing market headlines this spring and summer indicate that selling prices are falling in more metropolitan areas. That is based on two key measures. <\/p>\n
Housing market headlines this spring \u2014 and now summer \u2014 indicate selling prices are falling in more metropolitan areas, and they are by two measures.\n<\/p>\n
The important measure is year-over-year, and on that account, the D.C. area market is holding up.<\/p>\n
Redfin reported year-over-year median selling prices were down in 29 of the 50 largest metropolitan areas in July, the highest tally dating back to the company\u2019s 2012 records. But, the median selling price of a home that sold in the D.C. metropolitan area remained higher than a year ago.<\/p>\n
\u201cIn Washington, D.C., home values are down 0.56% month-over month, but they are up 2.65% year-over-year, a reflection of where we were at last year. At this point, prices are falling, but they\u2019re falling very slowly,\u201d said Redfin chief economist Daryl Fairweather.<\/p>\n
At that pace, it would take a long time for most existing homeowners to actually lose money on their sale. In the D.C. region, just 2% of current owners are underwater, or owing their lender more than they could sell their property for. But 35% are considered equity rich, able to sell for at least 50% more than they paid, according to Attom Data.<\/p>\n
However, some sellers in the D.C. region are still coming out of the gate with list prices that may not be the ultimate selling price.<\/p>\n
\u201cListing prices are higher than what homes are actually selling for, but listing prices have been coming down since May of this year. It seems like more sellers are starting to accept reality,\u201d said Fairweather, who attributes that to more sellers listing to their agents up front.<\/p>\n
\u201cReal estate agents, when they\u2019re doing their jobs correctly, are showing their sellers what the comps are, they show them how quickly homes are selling. They show them what homes are priced appropriately and how they compare to homes that are overpriced and are lingering on the market. That is definitely an important job of real estate agents, and it seems to be getting through in Washington, D.C.,\u201d she said.<\/p>\n
About one in 10 listings that sold in the D.C. area this spring had the original listing price reduced, according to listing service Bright MLS.<\/p>\n