Average DC Home Payment Up 24 Percent Since 2012

• February 21st 2014

by Lark Turner

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Home payments have risen 24 percent in DC over the last year, according to a new study.

The analysis, by RealtyTrac, looked at how monthly payments rose between the fourth quarter of 2012 and the end of 2013. The 24 percent increase in DC puts the city just slightly higher than the national average of a 21 percent increase.

In the fourth quarter of 2012, the report determined that the median sales price for a home in DC was $452,591. That jumped to $507,663 by the fourth quarter of 2013, a 12 percent increase. During the 12-month period, average monthly payments rose in the city from $1,954 to $2,417.

RealtyTrac calculated the monthly payments with the assumption of a 20 percent down payment with a 30-year fixed interest rate of 4.46 percent for homes purchased in the fourth quarter of 2013, and a 3.35 percent 30-year interest rate for homes purchased the previous year. They also folded in a 1.04 percent annual property tax, 0.40 percent of the purchase price in annual maintenance costs and 0.35 percent of the purchase price in annual home insurance costs. The firm subtracted the tax benefit from the mortgage interest deduction and property tax deduction using a 30 percent income tax rate.

The study tracked county-level data across the country. The biggest price jump occurred in DeKalb County, Georgia, where payments rose a whopping 62 percent. At the other end of the spectrum, payments fell 11 percent in Rutherford County, Tennessee.

This article originally published at https://dc.urbanturf.com/articles/blog/dc_house_payments_jumped_24_percent_in_the_last_year/8154.