If you’re thinking of buying or selling a home in Washington DC, Northern Virginia, or Montgomery County Maryland next year, you’re likely wondering what’s expected to happen in the housing market. The Estridge Group has done their research and uncovered a few key trends that we expect to impact the DC Metro market in 2020.
#1 – More stability in economy = higher interest rates?
We have been enjoying historic low interest rates in the DC Metro area for the past few years. This is partly because of investors flocking to US treasuries. Though interest rates are likely to remain low for 2020, if we see more stability in the world economy, they could inch their way up in coming years. Resolutions of the trade disputes and/or Brexit will move money out of the bond market causing higher interest rates.
#2 – Consumer confidence will remain strong.
The Estridge Group expects Washington DC homebuyers to remain confident. Sounds trivial, but consumer confidence is one of the most important leading indicators for the housing market. Buying a home is a huge decision and a long-term commitment. Buyers need to feel secure in their decision. With the current state of the DC Metro market, buyers are feeling good — and will continue to feel good — about buying a home in this fast-growing area of the country.
#3 – Inventory issues will continue to affect buyers looking for low- to mid-priced homes.
There is no doubt that neighborhoods like Chevy Chase in Montgomery County and Georgetown in Washington DC are known for their historic and luxury real estate. Here, there is no shortage of inventory for homebuyers. There is, however, a lack of listings for mid- and lower-priced homes, where demand outpaces supply, and that will continue to happen in 2020.
#4 – New construction, especially of starter homes, may slow.
While there is plenty of demand for new, already-been-built homes, the days of new construction and custom-built homes may be behind us come 2020. The cost of land and materials, the shortage of skilled labor, and DC Metro regulatory environment make it expensive to build from the ground up.
#5 – Price appreciation will remain healthy.
Though a rise in housing prices is good, we all know what it can mean when prices rise too fast and too hard: Bubble! A modest rise, however, is healthy. 2020 is expected to see a rise of about 2% to 6% is, a solid, healthy gain.
#6 – Home sales will be brisk, particularly for low- to mid-priced homes.
The Estridge Group expects the number of DC Metro home sales to continue to be strong and steady in 2020. It’ll remain a seller’s market for mid- to low-priced homes, while buyers will have more options in the mid- to upper-price ranges.
If you have questions about how these trends may affect you, don’t hesitate to contact us at the Estridge Group. As specialized professionals in the Chevy Chase and Washington DC areas, we know this market like the back of our hands. We’re here to help you know it too.