D.C. Market Update: Buying vs Renting, Amazon’s New HQ2 Shortlist, and Rising Interest Rates
Our market has continued to perform well throughout 2018, with home prices hitting record high levels this past June, and inventory continuing its 26-month long decline.
Beyond price increases, there have been a few more interesting recent developments in our market:
- Buying is Cheaper than Renting in D.C. According to Trulia, it is now 26.8% cheaper to purchase a property in the D.C. area compared to renting. As UrbanTurf notes, buying is cheaper than renting in much of the country. But for most high-cost urban housing markets—like San Francisco—the opposite is true. This recent finding appears to continue D.C.’s designation as one of the country’s most (relatively) affordable major urban metros… despite our hot market and high housing prices.
- Amazon to Announce New Shortlist for HQ2. As reported by The New York Times, Amazon appears ready to announce their new shortlist for their second headquarters. While Amazon has not made any official announcements, The Times notes a swirl of speculation that the e-commerce giant is about to ask for final offers from their top candidates. Recently, we wrote about why D.C.—and a few areas within our surrounding metro—will most likely make this final list of potential Amazon HQ2 options.
- Interest Rates Keep Climbing. While interest rates dropped slightly this week, they have continued their long-term trajectory upwards, hitting a recent high of 4.66 percent. In comparison, rates sat around 3.9% at this same time last year. While this has become cause for alarm for some market watchers, as we recently noted, high interest rates are unlikely to make a significant impact—positive or negative—on our market.
As our market continues to evolve, we continue to seek out the key opportunities. To learn more about our market’s emerging opportunities, call us at (202) 713-9072, or email us at email@example.com today.