The 3 Charts That Will Define The DC-Area Housing Market

• January 17th

by UrbanTurf Staff

✉️ Want to forward this article? Click here.

Today, UrbanTurf is taking a look at what we think will be the three metrics that will determine the direction of the DC-area market in the coming months.

---

One of the main themes of the market will be something that homebuyers are all too familiar with: a dearth of homes for sale. But the issue may not be the number of active listings on the market, but rather the lack of new homes for buyers to choose from. In December, approximately 2,100 homes hit the market, the lowest level of monthly new listings in two decades. More homes will certainly hit the market as spring approaches, but the influx likely won't be enough to satisfy buyers on the hunt. 

---

As metrics that measure the housing market have gone up and down over the last 10-15 years, DC area home prices have generally trended in one direction: up. On average, the median home price in the region has increased 6% per year over the last 5-6 years. Hovering between $590,000 and $650,000 for the last several months, we don't anticipate the price appreciation to stall, which is likely not news that buyers want to hear. 

---

The one thing that might give buyers the most hesitation in the coming months is laid out in the chart above. Two years ago, long-term interest rates sat at 3.56 percent; yesterday they rose north of 7%. With hopes for a series of rate cuts from the Fed this year fading, it seems unlikely that rates will fall substantially. And with prices remaining stubbornly high, buyers may find it hard to justify a new purchase. 

Thumbnail photo by Ted Eytan. 

This article originally published at https://dc.urbanturf.com/articles/blog/the_3_charts_that_will_define_the_dc-area_housing_market/23091.