It’s a rule of real estate that markets change and trends come and go. We have seen many transitions in DC area real estate during the past year, and there are more to come! Here’s a look at where the DC housing market stands today, and a peek at what the future could bring.
DC Area Home Prices Show Year-Over-Year Gains
The DC housing market has made good progress throughout 2012, and we are seeing the momentum carry into 2013. As of January 2013, home sellers were getting an average of 96.39% of their asking price, an improvement of 2.58% from a year ago. Homes in Metro DC are spending an average of 65 days on market, which have shortened up by 15.58%. Higher prices + faster market = happy home sellers!
Sales activity has also improved, with January 2013 sales volumes up 12.21% over January 2012. The median sale price of a DC home increased 12.27% to $421,000.
Home inventory is on the decline, however, with fewer properties in the entry and mid-range price levels. This helps boost home prices, but it presents a challenge to home buyers.
Changing DC Economy, Demographics Begin to Show
Historically, the economies of DC, Chevy Chase and Bethesda have been closely tied to federal employment. It is likely that fewer federal jobs will be created in the future, according to an article in The Washington Examiner. Instead, we will see new employment opportunities in technology and health care, which tend to attract a younger workforce.
The home buying groups known as “Echo Boomers” and “Generation Y” are challenged by high student debt. New mortgage rules concerning debt-to-income ratios could make it more difficult for them to qualify, even while rates remain low.
Consumer profiles of younger home buyers also suggest that they enjoy urban culture and are drawn to high-density, walkable communities. Future trend projections suggest that urban sprawl will recede, and urban infill will become the norm. We will see more condos and fewer McMansions in future home developments.
Your DC, Chevy Chase and Bethesda Real Estate Resource
To sum it all up, there will always be good demand for homes in the DC Metro area! The nature of that demand will depend on a host of changing conditions and market forces, from the economy to the job market to the lending environment. This is why you need local real estate experts who have a proven track record of success!
If you are buying or selling a home in the DC Metro area, give yourself the advantages of working with The Estridge Group! When you need information about DC, Bethesda or Chevy Chase market conditions, or help with your DC Metro home searches, we’ll be here for you!
Contact us for courteous, professional guidance!
Melinda Estridge
The Estridge Group-Long & Foster Real Estate, Inc.
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