What’s Happening in the D.C. Real Estate Market?
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Because rates are so low and we have a historically low level of inventory, most of the greater D.C. area is in a seller’s market.
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We’re right in the middle of the fall market season now, which has thus far been very busy. It’s typical for the market to slow down once kids go back to school in August but then pick back up after Labor Day weekend, and we saw that again this year.
There was a lot of new inventory that hit the market, but we also saw a lot of buyers come back into the marketplace. A lot of that new inventory, then, was absorbed. What we’re left with now is a historically low level of inventory. We’re currently sitting at a three-month supply, and since a six-month supply is considered balanced, most of the greater D.C. area is in a seller’s market.
As you go a little bit further out, you’ll a see a little softening in areas like Potomac, Great Falls, Vienna, and even as far as Reston. This is indicative of the price points that are prevalent in those areas. Anything under $750,000 or even $800,000 is still extremely popular given that interest rates are still so low. That kind of borrowing power is forceful, and you’re seeing a lot of people step up their bases a little bit to get that property. We’ve also seen some softening in the more expensive markets between the $1.3 million and $1.4 million price points. Because interest rates are so low, many lenders have offered some really great jumbo loan packages, and these are starting to help the even more expensive markets between the $1.6 million and $1.8 million price points.
We’re seeing a historically low level of inventory.
If you’re a buyer, it’s a great time to be out there looking, particularly to lock in on something while the rates are so low. The next Fed meeting is happening in December, and they are expected to raise interest rates, so it might be a good idea to protect yourself from what could be a one-quarter to a half percentage point rate increase.
If you’re a seller and you’re looking to downsize, now is a great time to do that as well. There are a lot of buyers out there, and because of the interest rates, you’ll likely be able to find that higher price point you’re looking for.
If you have any further questions about the D.C. real estate market, feel free to give me a call or send me an email. I would be happy to assist you in any way I can.