The Wall Street Journal reported in yesterdays paper that home sale sin the U.S. had their biggest monthly increase, a 6.5% rise, in almost seven years.
Economists still warned that the spring buying season will probably be slow due to growing economic problems, like all of the layoffs reported recently.
However, the Washington D.C. area seems to be holding up fairly well. Especially in areas that we focus on, around and inside the Beltway.
One driver I think is the relatively low unemployment rate in the DC area – 4%.
We have seen a lot of activity the last few months. Rates are low and construction costs have remained fairly stable. Rates seem to be around 5%. I’ve had a few of my rates actually drop below 5% (one of my rates, an arm is at 3.875%).
In my view, real estate is a long term investment. So when you think about it, this is an opportune time to be buying, if you are thinking long term.
The supply of homes for sale is also a driver of housing prices. Washington D.C. months of supply has dropped to 5.8 months of supply. Compared that with 29.5 months of supply in Miami and this market sure feels pretty good.
But real estate values really due vary and fluctuate differently within each neighborhood. We are finding Bethesda and Chevy Chase are doing much better than Gaithersburg and Germantown, for instance.
If you are thinking of selling your home and it’s inside the beltway give me a call or send me an email at rob@ParamountConstruction.net
Tell me what you think of this market