It’s tough to be a buyer in the Washington, DC real estate market right now. Prices have soared in 2021 after the major disruptions caused by the COVID-19 pandemic.
That is why it’s more important than ever to be on top of all the housing market trends in Washington, DC. Understanding how the market fluctuates can help you learn when and where to search for the property of your dreams.
We’ve put together this helpful guide to Washington, DC real estate trends in 2021. Read on to learn more about the state of the market, where it is predicted to go, and the smartest investments that you can make right now.
Washington, DC Real Estate in Fall 2021
The Washington, DC real estate market has been hot all year. Prices are up from 2020, and properties don’t stay on the market for very long. Right now, it’s hard to be a buyer in DC.
Fortunately, the market appears to be losing a good bit of steam after a very competitive summer. Fall months are generally slower for home sales than spring and early summer.
In June, the average price of a home in Washington, DC was a staggering $700,000. In July, that price fell to $675,000. Prices have continued to fall since their peak in June.
In August, the average price of real estate in Washington, DC was $659,003. In September, it fell to $615,000.
This $85,000 drop from June to September is good news for potential buyers. Prices are expected to continue dropping until January. After that, the average market price is predicted to rise as we near the peak times of spring and summer.
Right now, homes are staying on the market across the region for an average of eight days. This indicates brisk sales and a quick turnaround time, but is the longest since January 2021. If you find your dream property, act fast.
Washington, DC Real Estate in 2020 vs 2021
It’s hard to compare statistics year-over-year because of the extreme disruptions caused by the pandemic. However, these statistics can be useful for predicting how the housing market will fluctuate as we return to a new normal.
The median price of a house in August 2021 is up 6.3% from August 2020. They are up 17.8% compared to August 2019.
The median price of a condo in Washington, DC was only up 0.4% from August 2020 to August 2021. However, they are up 13.8% compared to August 2019.
In Montgomery County, median sales prices rose by 14.6% from August 2020 to August 2021. They are up by 16.8% compared to August 2019.
In Prince George’s County prices rose by 9.9% from August 2020 to August 2021. They are up a whopping 25.8% from August 2019.
In Fairfax County, median sales prices rose only 4% from August 2020 to August 2021. They are up by 14% from August 2019.
The Bright MLS T3 Home Demand Index measures a wide variety of factors in order to evaluate overall demand. In August 2021, the index was 12% lower than in August 2020.
This decline is driven primarily by reduced buyer demand for lower-priced condos and single-family homes. Demand has also decreased for higher-priced condos, while the demand for mid- to upper-range single-family homes has increased.
Buying Homes vs Buying Condos in Washington, DC
The steep increase in house prices from 2019 to 2020, and then the more gradual increase in 2021 has led many people to consider buying a condo instead of buying a house. For many, this is a smart investment strategy that can pay off down the line.
For one, condos appreciate in value. People who live in cities are always looking for low-maintenance housing options. As the market prices for homes and condos alike continue to increase, you may find yourself with a property that is much more valuable than you initially anticipated.
You can also purchase a condo to then rent out. This is an excellent way to generate additional income that will help you upsize to a house later. You can also use that extra income to purchase a nicer or more centrally located condo.
Condos can also help you live in your desired neighborhood on a tighter budget, because they tend to be less expensive than houses and there are usually more of them for sale. If you’re set on a particular neighborhood and finding houses out of reach, consider your options with condos in the same area.
Millennials and Gen Z people who are just entering the workforce are very attracted to condos. They love the convenience of condo living and value the ability to leave their condo, walk down the street and be in the middle of all the action.
Retirees are also big renters and buyers of Washington, DC condos. Most retirees are looking to downsize after their children are established and on their own. The condo lifestyle is ideal for them because it gives them access to amenities nearby or even right in their own building.
Shop Condos for Sale in Washington, DC Today
The COVID-19 pandemic has caused unprecedented disruptions to the Washington, DC real estate market. With prices soaring compared to 2019, it’s a tough time to be a buyer.
Condos allow you to enjoy the convenience of nearby amenities while living in a much more manageable space. That’s why so many people are choosing to invest in condos.
Many people also choose to buy condos now and rent them out to generate more income. That income can prepare you for buying the property of your dreams once the market is more favorable for buyers.
If the condo lifestyle sounds like it’s for you, take a look at our condos for sale in Washington, DC today.