In February, HSH.com conducted a study that found that a person needs to earn at least $62,809.63 a year in order to afford a median-priced home in the D.C. area. Nearly four months later, HSH has conducted the same study and found that number has increased to $78,503.56. Oof.
As HSH.com says, “things were more affordable in D.C. during the first three months of the year.” But things aren’t all bad for the local housing market. Last quarter, the median home price in the metro area was $368,000. This quarter, it’s dropped down to $358,900.
BTW – if they’re talking about median SALE or LISTING prices vs values, they should be taken with a grain of salt.
Listing prices: if high-priced homes sell faster, it will skew the median listing price downward without lowering actual home values.
Sale prices: if high-priced sellers sit on their homes rather than selling, it might skew the price down without affecting values.
Statistics are a funny thing. Now we just need Mel Watt to “come to the rescue”. (As if — despite the hullabaloo, his changes are very incremental and measured thus far.)
DC has been very sticky. Concentrations of home-price radioactive fallout are strongest the closer to the core reactor (DC) you are, so to hear median prices are falling is good news.
If Rich’s charts are anything to go by, median prices for a metro would appear to track the Case Shiller closely. On a zip level they can get skewed.
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