The toughest question in the DC-area real estate market is all about the homes. Specifically, when will there be more for sale. It is not a question with a clear answer, but that doesn't mean educated guesses can't be made, and a new report aims to give it a shot.
The Bright MLS report on the June housing market out today finds that the inventory of homes for sale in the region is down 20% compared to a year ago, and is just half of what it was in 2019. Active listings have also declined for three consecutive months.
One of the primary reasons for the lack of homes on the market is the "golden handcuff" theory. That theory refers to the homeowners who locked in historically low interest rates over the last five years and are unwilling to list their homes for sale when they will need to buy another home at today's higher rates.
But as news comes that inflation eased this week, the likelihood grows that interest rates could start dropping soon.
"Inventory is going to remain low throughout the rest of 2023," the Bright report stated. "However, as interest rates edge down over the next 6 months, we should see more new listings from homeowners who have felt 'locked in' to a very low mortgage but are living in a home that does not work for them or their family."
This article originally published at https://dc.urbanturf.com/articles/blog/the_million-dollar_question_in_the_dc_housing_market/21241.
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