If you are thinking about moving to Washington DC, then you are not alone. The United States capital is a dream destination for many people across the globe. However, before you travel to the city to start looking for a house, it’s important you understand the housing market in that area.
In this article, we will discuss the current Washington DC real estate market. We’ll talk about aspects like home sales, demand, and housing prices, among others. So whether you are just curious about understanding the Washington DC real estate market or looking to acquire a home in this city, you have come to the right place. Keep reading to learn more.
Key Statistics About the Washington DC Real Estate Market
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Homes Are Selling for 50% Higher Than the Listed Price
Two years ago, the Washington DC real estate market saw unbelievable growth. Many people entered the market, both buyers and sellers. This led to bidding wars, which pushed housing prices up. Today, houses go for 50% higher than the listed prices.
Average Listing Time is 78 Days
According to data from listwithclever.com, the average time a house stays on the market in Washington DC is 78 days. By comparison, the national average is 83 days.
Over 2,500 Homes Listed but Sales Have Decline by 50%
Realtors.com’s data shows that there are still over 2,500 homes available for sale in Washington, DC. Their prices range from $450,000 to $19 million. The dramatic decrease in sales is attributed to rising housing prices. Less than 500 homes were sold in 2023.
Average Housing Price Now Stands at $667,000
Housing prices in Washington DC have risen over the last ten years as the city’s population and economy witness massive growth. Per data from Zillow, the average housing price in Washington DC is $667,000.
A Strong Job Market
As mentioned earlier, Washington DC’s economy has been growing over the past ten years. Data from Ychart.com shows the city witnessed its unemployment rate drop by 21% in 2023. This indicates that there are several employment opportunities available in Washington DC.
Rental Property Dominates the Market
Per data from rentcafe.com, many buyers in Washington DC prefer acquiring property and renting it out to living in it. This suggests that the rental market in this city is booming.
Average Rental Income is $2,550
If you are looking to live in Washington DC, be ready to spend at least $2,550 every month on rent. This rate might be a lot for some buyers, but it is a decent income for landlords.
The Average 30-year Fixed Mortgage Rate is 5.6%
The rate for an average 30-year fixed mortgage currently stands at 5.6%. By comparison, the national average is 5.9%.
Process of Buying a Home in Washington DC
Identify your Ideal House
The first to buying your ideal home in Washington DC involves identifying it. There are several ways to do so. You can search for houses on dedicated real estate platforms or hire a real estate agent to help you with the search.
Send Your First Offer
Once you locate your ideal home, you can submit your offer to the property seller. This step is crucial for opening negotiations. You can do this with the help of a qualified real estate agent.
Survey the House
After the seller accepts your offer, you can organize to visit the house for a survey. Check if there are areas that need repairs and inform the seller.
Enter Into a Sale Agreement With the Seller and Make a Deposit
If you are satisfied with the condition of the house, you can get into a sale agreement with the seller. Afterward, you will be required to make a down payment, usually 20% of the agreed house price.
Complete the Purchase
Upon making a down payment, the seller’s lawyer will submit the sale agreement to a land registry to complete the ownership transfer.
Once a new title deed is produced, complete the purchase by transferring the rest of the funds to the seller. You can now move into your Washington DC house.