Buyer vs. Seller: A Price Tug-of-War

In the evolving DC metro housing market, a notable gap is emerging between buyer and seller price expectations. Sellers, recalling the market highs of 2022, often set prices accordingly, while buyers, facing current economic realities, anticipate lower costs.

As the data from Georgetown, used as an example in the blog, shows us, this disparity reflects differing perspectives on market realities, with data ambiguous enough to lend partial support to both sides. Thus, it becomes crucial to analyze each property individually—factors like price, condition, and location can necessitate entirely different selling or buying strategies.

For the first time in five years, Washington, DC's population has surpassed 700,000, marking an exciting milestone for our city.

This growth signals a strong rebound post-pandemic, driven by job recovery, urban appeal, and renewed migration. But what does this mean for housing affordability, infrastructure, and opportunities in the real estate market?

🔗 Dive into the details and discover how DC is adapting to this surge—and stay tuned as we explore how Montgomery County and Arlington stack up in comparison!

December Housing Inventory Surges 22% Nationwide

In December 2024, the number of active listings in the real estate market increased by 22% compared to the previous year, which is a positive sign for buyers 🏡📈. Overall, the number of properties for sale is still below pre-COVID levels, but recovery is underway.

The largest increases were recorded in high-demand cities such as Miami, Orlando, Denver, and Las Vegas. The average days on the market rose to 70, and the share of listings with price reductions stood at 12.9%. According to data for the Southern region, active listings grew by 26.7% 📊. Overall, the real estate market is showing growth, which could present opportunities for buyers in 2025 🌟.

Mortgage Rates Hit Highest Level

Since The Summer

Long-term mortgage rates are starting 2025 at their highest level since July. On Thursday, Freddie Mac reported the average rate on a 30-year mortgage at 6.91%, up 6 basis points from the previous week. This is the highest level in nearly six months.

“Rates are higher compared to this time last year, and affordability challenges persist, but buyers seem to be returning to the market as pending home sales rise,” said Sam Khater, Freddie Mac’s Chief Economist.

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