D.C. homebuyers and renters gain bargaining power as Zillow shows inventory rises, prices level off, and concessions become more common across the metro.
WASHINGTON — The D.C. metro housing market is showing signs of cooling as new listings rise and sellers begin to negotiate more on price, according to new data from Zillow.
The typical home value in the Washington region is about $570,000, up 4.5% from a year ago and more than 30% higher than before the pandemic. New listings have climbed nearly 21% compared to last year, while total inventory has increased about 20%. Even so, inventory remains roughly 44% lower than before 2020.
Homes in the region are selling in about 16 days on average, faster than before the pandemic, but Zillow says more sellers are offering concessions or small price cuts to reach buyers.
Zillow Senior Economist Orphe Divounguy said the slowdown in housing activity is linked to the broader economy.
“We forecasted a modest improvement in home sales across the country, but that didn’t really materialize during the home shopping season,” Divounguy said. “Sellers returned, but buyers lagged behind. Part of the reason is the labor market has cooled. Job growth has slowed, and that’s contributing to the slowdown in housing activity.”
For buyers, experts say the shift means more room to negotiate and potentially better deals. They recommend researching down payment assistance programs, comparing lenders, making the largest down payment possible, negotiating after inspection, and being willing to walk away if a deal doesn’t make financial sense.
Zillow’s report also shows more flexibility for renters. Rent growth has slowed as more units enter the market, and nearly 59% of listings now include concessions such as free parking or a month of free rent, up from about 50% a year ago.