Buyer Competition Defines January Market

Competition among D.C.-area home buyers remained fierce in January, as the Federal Reserve contemplated interest rate hikes in the coming months.

In mid-February, James Bullard, Federal Reserve Bank of St. Louis president, called again for a short-term interest rate hike of 1 percent by July, while other Fed representatives weren’t quite as aggressive. Fueling these ruminations is a inflation explosion of 7.5 percent recorded last month. The idea is that the rate hike can put the brakes on consumer spending and keeps prices lower.

For homebuyers, this adds a bit of urgency for those who are looking to buy but also take advantage of low interest rates before an increase.

The result is continued demand pressure with inventory remaining low compared to the number of buyers out there scrambling to find that new home.

In January, the number of active listings in Washington, D.C. were down 13.7 percent compared to January 2021. It’s a story that is the same throughout the region: Arlington County listings (-41.9 percent), Alexandria City (-42.6 percent), Fairfax County (-49.4 percent), Prince William County (-26 percent), Montgomery County (-43.2 percent), and Prince Georges County (-4.4 percent).

Following close to the lower number of listings are increasing prices throughout the region, when you compare January 2021 to last month:

Washington, D.C.’s median sales price increased to $645,000 from $600,000 (7.5 percent), and the average sale price jumped from 744,545 to $804,117 (an 8 percent increase).

Arlington County’s median price jumped from $600,000 to $620,000 (3.3 percent), and average sale prices went from $713,514 to $757,534 (6.2 percent).

Alexandria City’s median price rose 1 percent to $495,000, while average sale prices dropped about 4.2 percent—from $628,924 to $602,585.

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Christopher Prawdzik and his wife Angela Logomasini are licensed Realtors® with Samson Properties in Alexandria and are members of the Northern Virginia Association of Realtors® Top Producer’s Club. Operating as D.C. Region Real Estate, they offer comprehensive real estate services, including 4½% full-service listings, throughout the entire Washington, D.C. real estate market. Angela is licensed in Virginia, Washington, D.C., and Maryland. Christopher is licensed in Virginia and Washington, D.C. In addition, Christopher holds a broker license in North Carolina and is affiliated with McGary & Associates.
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