As 2019 draws to a close, we analyze the state of the DMV housing market and it’s a mixed bag — some good news for Buyers, some good news for Sellers. Low inventory and rising prices are projected for the 2020 market.
Good news for Buyers: Affordability is up. Interest rates are at historic lows and, for a 30-year fixed rate mortgage, are nearly .75% lower than they were a year ago. That’s about $150/month in savings at the median DMV home price — or $54K less in payments over the life of the loan.
Good news for Sellers: Inventory is down and prices are up. The number of new listings are down 3% versus 2018 — meaning there are more eyes on fewer properties. More Buyers combined with lower inventory fueled a 4.5% median price increase over the last 12 months. Expect price appreciation to slow in 2020 to a still respectable 2.6% regionally.
Here are some take-aways on the state of the DMV Housing Market:
- Home prices are up 4.5% year-over-year — The region’s median sales price is now $465,600. That breaks down to a median price for condos at $324,000, townhomes at $450,000 and single-family detached home prices at $561,883.
- Housing inventory is down — New active listings are down 3% from last year. That means there are fewer new listings on the market and the average days on the market for properties has also decreased to 13.
- 2020 home prices are expected to rise 2.6% — Price appreciation in the D.C. region is forecasted to be 2.6% in 2020. Of course that will differ greatly by neighborhood — but 10 years into a housing expansion, that is considerable.
- Interest rates are nearly .75% lower than last year — 30-year fixed rate mortgages now average 3.65% for well-qualified borrowers. That’s down from 4.4% a year ago. Forecasts indicate that rates will rise to 3.88% by the end of 2020.
Real estate markets are hyper localized. If you want to know what the market looks like in your neighborhood, reach out and consult a Realtor. Or learn more ways to get an edge on our Home Buyer Tips Blog.