Although many homeowners and sellers in the Washington area in recent years have reveled in price appreciation and quick sales, buyers have been less celebratory about the hot housing market. A new analysis by Zillow, an online real estate site, offers a glimmer of hope for buyers in the D.C. area and in about half of the largest metro areas around the country.
While prices are still rising, the rate of that price growth is slowing in many markets, particularly some of the hottest markets. Zillow forecasts annual home value growth to slow to 6.6 percent over the next year, compared with 8.3 percent over the past year.
The more compelling indicator of a potential shift in the market is that about 14 percent of listings across the country had a price cut in June. Between January and June, the share of listings with a price cut increased 1.2 percentage points, the highest January-to-June increase ever reported, according to Zillow.
In the Washington area, 15.4 percent of listings had a price cut in June 2018, down slightly compared to 16 percent in June 2017 but up from 13.9 percent in January. The typical price reduction was 2.5 percent in June 2018.
Price cuts are most prevalent in high-cost housing markets and on higher-priced listings. However, the market with the highest share of listings with price cuts was Tampa where 22.2 percent of listings had a price cut, followed by San Diego at 20 percent.
For more information, visit https://www.zillow.com/research/high-end-price-cuts-21018/.