D.C.’s Real Estate Market Heats Back Up (and Looks to Only Get Hotter)
There have been some rumblings lately that the Washington D.C. real estate market might be losing some steam. While prices remained high, and, inventory remained low, for the last few months sales volume lowered year-over-year. Our market was still performing very well, and the fundamentals remained strong, but the numbers just weren’t hitting the same highs we’ve grown accustomed to in recent years…
But all of that changed last month. In April, as UrbanTurf reports:
- Regional home prices hit the highest levels in a decade. (Representing the 19th straight month prices have increased.)
- Prices in Washington D.C. rose by almost 14%, and hit $590,000 (knocking on the door of our city’s highest prices ever.
- Closed sales increased 9.4% year-over-year, and hit the highest total sales (4,837) in the region in a decade.
- Median Days on Market also hit a decade-low of only 9 days for the region, and just 8 days in D.C. itself.
- While the volume of new listings increased, active listings still dropped 3.2% in D.C. in April.
All these data make one point clear: D.C.’s market may have cooled over the last few months, but in April it returned to form—and, chances are, our market will only continue to heat up in the coming months.
As outlined by WTOP, our region has been seeing double-digit drops in year-over-year inventory. Looking at a few other factors, they determined our market currently exhibits “a perfect storm” of market conditions: prices are rising, would-be-sellers are holding onto their properties, and—perhaps most important—developers are “not meeting demand for entry-level and move-up homes”.
All of these factors—in particular the fact developers are not meeting demand—suggest our market will continue to heat up and provide great opportunity in the coming months and years. Contact Evergreen Private Finance today to discuss how we might work together to work within this market to meet its needs in a profitable manner. Call us at (202) 713-9072, or email us at firstname.lastname@example.org.