2018 Washington DC Real Estate Market Summary
Washington DC Real Estate market started last year (2018) with an early spring market, caused by the early start of buyers concerned about the interest rate increase of December 2017. This early start, gave the impression of a positive picture by the time the spring/summer market was reached. By mid Summer to the end of the Summer market we could feel that a lot of buyers had found their home.
The new tax reform created an uncertainty surrounding the market behavior, it was unclear if it had any repercussion on our local market. 2019 might give us an indication of its effect if any.
Interest rates are going to keep on playing a key role in market trends, the interest rates during Fall of 2018 were near or slightly over the 5% mark, by the end of 2018 and early 2019 we have seen a rate drop with an average of 4,5% for a 30 yr fixed rate.
The Washington DC Metropolitan Real Estate Market is a complex one, in 2018 the dominant trend was the low inventory of houses for sale, this did keep buyers on edge and ready to write an offer the minute the right listing hit the market.
Washington DC is without a doubt the strongest local market, where it is clear that sellers do have the upper hand. Multiple offers situations were common during 2018. Other sub-markets like Old Town Alexandria, North Arlington VA, McLean VA, Bethesda MD had similar behavior, days on the market for move in ready listings properly priced were very low. Some listings did sit on the market for more days, but we could probably argue that it was a combination of over priced and lack of listing preparation. Some sellers were aiming to get top dollars for their homes, but were not willing to prepare their homes to show well.
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