Inventory’s Up. So Why Isn’t It Easier to Buy Right Now?

Spoiler: More listings don’t always mean more opportunity.

📈 Market Decoder
Monthly insights on prices, inventory shifts, and the policy forces behind DC real estate.

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If you’ve seen recent headlines, you’ve probably read that inventory is rising in DC.

That’s true.

But here’s what no one is saying:

More inventory ≠ better odds for buyers

In fact, for many of my clients, this market feels just as tricky as when listings were scarce.

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📊 Why More Listings Don’t Always Help

Let’s decode it:

1. Mortgage rates combined with high home prices are busting average buyers’ budgets
   More listings may be coming on market, and some sellers are lowering list prices, but sold prices are still high and mortgage interest rates aren’t dropping enough to compensate

2. Large luxury homes are still driving DC’s median sold price, and their buyers represent only a small fraction of the home buying population. Sold volume is down, but sales of those $2M+ properties are pushing median sold price up, creating confusion for buyers and sellers alike.

3. The best homes still go quickly
   Well-priced, turnkey homes located in the District’s most desirable neighborhoods? They’re still gone in a weekend—often with multiple offers.

4. Junk inventory drags down the signal
   Re-lists. Questionable flips. Fixers. Listings that have been sitting for 60+ days. These pad the numbers, but aren’t attracting serious buyers.

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🧭 What Inventory Numbers Actually Mean

Let’s say the market has 5.8 months of inventory as it did in May—well above the 5 year District average of 3.4 months. In Washington DC, this would indicate a very strong buyer’s market… on paper. You’re excited.
But:

• You find that 50% of those listings are outside your budget—too low, too high—with attributes that don’t meet your needs;

• 30% of the rest are home types and price points that aren’t selling well due to lending requirements, mortgage interest rates, association fees, or property condition. You eliminate those, too;

• And up to 70% of the remaining inventory is located outside your desired neighborhoods.

What you’re left with is a tiny slice of inventory worth pursuing. Within that segment, scarcity and competition will push prices up, even as you read report after report saying DC home prices are softening due to high inventory.

The fact is that gross inventory volume data as a standalone metric is not especially useful to most home buyers and sellers. What it does is skew perception of DC's real estate market conditions and set unrealistic expectations amongst home buyers and sellers.

A better way of viewing the market is on a case-by-case basis, using a combination of metrics specific to the individual's price point, desired home type and location. And--of course--to seek the advice of a qualified expert who knows the market. 👍

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Zuzu’s Truth:

Buyers don’t compete against the market.
They compete against the best of it.

Understanding what kind of inventory is growing and selling matters far more than total inventory volume.

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