Despite record high temperatures over the last few weeks, the arrival of fall is just around the corner, which means a new housing season is approaching. Today, UrbanTurf looks at what we think will be the metrics that will determine the direction of the DC-area market in the coming months.
The path that the chart above takes this fall will largely dictate the direction of the housing market. This week, 30-year mortgage rates hovered around 7.2%, double the 30-year rate from late 2021. While predictions are being made that rates could go down by the end of the year, strong economic data is not helping push rates in that direction.
The effect of high rates can also be seen in the volume of homes coming on the market, or lack thereof. The number of new listings to come online in the DC area in July fell to a level not seen since the early 2000s. Specifically, the number of new homes tracked 34% lower than last year. It is not hard to see why this is happening. Not many owners with a sub-4% interest rate are compelled to list their home for sale when faced with buying a new home with a 7% mortgage.
Despite the headwinds illustrated in the charts above, home prices in the DC area rose by about 6% year-over-year in August. Following a similar increase in July, it marked the first time since 2021 that there were two months in a row of annual price gains. The rise in prices is the result of a small, active pool of buyers competing over a much smaller pool of homes on the market. If owners stay on the sidelines and demand remains moderate, we will see continued price gains this fall.
This article originally published at https://dc.urbanturf.com/articles/blog/the_3_most_important_charts_for_the_fall_housing_market/21436.
Most Popular... This Week • Last 30 Days • Ever
Here are some precautions to take before buying real estate with a buddy.... read »
The largest development on the boards for the H Street Corridor will go before DC's B... read »
The plans for 7749 Old Georgetown Road will go before the Montgomery County Developme... read »
Today, we highlight the five DC neighborhoods that have been the most affordable to h... read »
The red wall near the corner of 30th and M Street NW hit the market back in July for ... read »
With interest rates reaching their highest levels in 22 years, it is critically impor... read »
Plans have been filed with DC's Historic Preservation Office to convert the building ... read »
The change would allow for an 80-acre portion of DC's 272-acre Armed Forces Retiremen... read »
An application filed with DC this week signals the end is nigh for a McDonald's locat... read »
Madison Highland Live/Work Lofts has plans in the works to convert the 12-story offic... 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. Start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro