Interest rates have been the main theme of the housing market for over a year, but in August, home prices in the DC area took on a larger role.
Just like July, the median home price in the DC region rose by about 5% year-over-year in August, according to a new Bright MLS report. It marked the first time since 2021 that there were two months in a row of year-over-year price gains.
Home prices rose in most local jurisdictions, with Alexandria City, VA (+14.7%) and Fairfax County, VA (+12.6%) leading the way and reflecting a shift to higher-end transactions. DC proper and Falls Church were that only local areas that saw prices fall. In terms of property types, townhomes and condos saw prices rise fastest, which Bright MLS attributed to those properties being more affordable than single-family detached homes.
“Despite the run-up in home prices across the Mid-Atlantic in recent years, housing remains somewhat more affordable than in the high-cost West coast markets, which is why prices have largely been immune from declines some other parts of the country have seen in 2023,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “However, affordability is becoming a bigger challenge, with mortgage rates above 7%, and will push more buyers out of the market.”
This article originally published at https://dc.urbanturf.com/articles/blog/in_august_homes_prices_took_center_stage_in_the_dc_area/21454.