You’re likely familiar with tales from Washington’s nutso Covid-era real-estate market: homes selling for six figures above list price, buyers waiving all contingencies, open-house lines stretching down the block. That changed when interest rates started rising last spring. Suddenly, buyers and sellers paused instead of diving headfirst into the market, leading to a decline in activity that especially slumped toward the end of 2022 amid recession fears.
Things haven’t turned firmly in favor of either buyers or sellers, according to agents: While buyers now have wiggle room to negotiate price or ask for a home inspection, well-priced houses in desirable areas are still getting multiple offers. And because area inventory is historically low, prices have remained strong. In fact, the median rose to about $554,400 in 2022 from $530,000 in 2021.
And, as we leave winter behind, things are picking up—not to Covid levels but to the typical, healthy pace of a spring market in DC. “We were definitely slow in January and December,” says Bohlender, “[but] it’s shaping up to look pretty good.” So, what to expect in 2023? After a few long and topsy-turvy years, it might be time to meet the new normal.