With the first day of fall arriving this week, the fall housing market is officially here. UrbanTurf looked at what we think will be the three metrics that will determine the direction of the DC-area market in the coming months.
DC-area home prices have been hitting new highs annually for almost a decade. However, unlike past years, record prices aren't dampening sales in 2020. As the chart above shows, both home prices and home sales were at decade highs in August. If the frenetic sales pace continues into the fall, the supply of homes for sale will continue to drop unless a glut of new listings come on the market.
A year ago, there was a two-month supply of homes for sale on the market in the DC region. Since then, the for-sale inventory has been below the two-month mark every month, hovering around the 1.3-month mark for the last several months. A notable increase in new listings in August didn't increase supply and with interest rates low, the inventory of homes for sale will be an important metric to watch as we get into the fall market.
It's becoming a refrain that we find ourselves writing almost every week: interest rates have never been lower. Long-term rates have been below the 4% mark since last June and have been below 3% since late July, hitting a new low of 2.86% just two weeks ago. The low rates are enticing buyers to come into the market in droves, a trend that will likely accelerate if rates continue to drop.
Thumbnail image is of a condo for sale in Foggy Bottom.
This article originally published at https://dc.urbanturf.com/articles/blog/the-3-most-important-charts-for-the-fall-housing-market/17326.
Most Popular... This Week • Last 30 Days • Ever
Here are some precautions to take before buying real estate with a buddy.... read »
UrbanTurf takes a look at the sizable (and growing) residential pipeline southeast of... read »
DC landlords make more money listing their one- and two-bedrooms on a long-term basis... read »
The neighborhoods with the lowest priced homes for sale are on opposite sides of the ... read »
The application is for an 11-story development that would deliver 160 units at 610-62... read »
Harry Wardman is responsible for developing huge swaths of northwest DC, from row hou... read »
With interest rates reaching their highest levels in 14 years, it is critically impor... read »
A stately five-bedroom Woodley Park house has been home to not one, not two, but thre... read »
The most active developer in the Union Market has more plans on the boards.... read »
Lowe Enterprises has big plans in the works for what was the first phase of four-buil... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro