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Cities With Least Realistic Home Prices

Washington D.C.

  • Median listing price: $359,900
  • Median sales price: $313,300
  • Difference: -13%

While housing is relatively healthy in and near the capital’s center, Washington’s metro area makes this list because of the stagnant market on the periphery. Residential real estate within a 10-mile radius of the Beltway is selling quickly and for close to asking prices, but homes 25 miles away or more tend to linger on the market, says Mehmet Halici, associate broker with Weichert Realtors in Bethesda, Md., who sells real estate in the D.C. metro area. Most of those homes have been listed for at least three months and have slashed their asking prices by 10% or more, he says.

Experts say that disparity is part of a trend underway in pockets throughout the country: More buyers are choosing to settle down in or near major cities to be near work and save on transportation costs rather than move to the suburbs, says Halici. The diminished demand for homes in the suburbs then pushes the eventual purchase price of homes down.

Going forward, an even greater spread between the listing and sales prices could materialize, experts say. In February, 232 homes in the area received a foreclosure notice – that’s the first step in a foreclosure process – and while that number isn’t big it’s a 130% jump from a year prior, according to Those homeowners who manage to sell may have to accept a lower price.

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Next, the 3 markets with the smallest difference between list and asking prices:



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