2022 was a tale of two halves. We started the year in a low mortgage rate environment that was incredibly competitive for buyers. Our local market began with less active inventory than we had seen in decades. The end of the Spring market came with increased mortgage rates that pulled back demand. We saw our region’s average sale price peak in the second quarter of the year. Sellers were once reluctant to sell locally in an effort to avoid the high competition on the buying side. Once the sharp increase in mortgage rates arrived, sellers were then reluctant to give up their historically low, fixed mortgage rates on their current homes. This kept supply low even though demand was cooling, which in turn stabilized prices.
2 02 2 Y E A R E N D M A R KE T RE P O RT A SNAPSHOT OF THE DC METRO AREA RESIDENTIAL REAL ESTATE MARKET Across and Above: 1825 N. Quesada | Arlington, VA
2022 Year End Market Report
Ultimately, the Greater Washington D.C. Metro housing market finished the year with an average appreciation of 6.82%. While we had less units sold for the year, the final count was within a couple percent of the ten-year average. Mortgage rates will continue to be the most influential factor in supply and demand in the coming year.