These are all questions on people’s minds. The fed is possibly going to raise rates this month. A while back they indicated that they would do so several times in 2019. But we will just have to wait and see how it plays out. Here are a few thoughts to ponder with regard to the current housing market:
• Nearly two out of three houses sold in October were either under construction or yet to be built. (CNBC)
• Sales of new U.S. single-family homes fell to a near two-year low in September and data for the prior three months was revised lower, the latest indications that rising mortgage rates and higher prices were undercutting the housing market. (CNBC)
• Higher mortgage rates combined with high prices are hurting the housing market.
• Many people in the real estate industry talk about a “shift” that is happening where it is becoming a buyer’s market.
• Amazon’s HQ2 will be partially located in Northern Virginia, in Crystal City. This will have a ripple effect on the local economy in many factors.
• Prices and rates have gone up, but income and salaries have not kept up.
So, if you are thinking of buying a home in the D.C. area, there are a lot of indicators that buyers will be the most likely group to profit. But one could argue that sellers will also benefit from a growing and more diverse D.C. economy that is not mostly based on the government.
Either way, in a metro area like D.C., where rents can be very high in some buildings, a buyer can speak with a lender and possibly find out that their mortgage would be lower than their rent.
Many buyers find that using a multitude of sources for down payment – borrowing from retirement, gifts from relatives, using a program like DC Opens Doors, HPAP, or getting closing cost assistance from a seller, they too can get into the housing market and reap the benefits of being a homeowner.
D.C. is a unique market in that we have the benefit of a steady economy and also lots of people moving in and out. There are many international buyers and sellers too. We are expecting further growth in our market, and we will see what 2019 holds for both buyers and sellers.
Joseph Hudson is a Realtor with The Oakley Group at Compass. He can be reached at 703-587-0597 or Joseph.firstname.lastname@example.org.