In recent weeks the DMV has made national news constantly as you probably know, and you may be hearing or reading catchy headlines in the news and social media indicating of flood of listings coming to the market, prices plummeting, and a state of chaos ensuing - corresponding with government layoffs.
SO, Is it true?? The short answer is: No, Not today. We are seeing a normal seasonal uptick of inventory right now. Our area has had a remarkable deficit of inventory since Covid. We are still experiencing below average inventory when looking at pre-Covid averages. Are prices plummeting? “Plummeting” is a dramatic and emotional word designed to grab your emotions and make you read on. NO. NOT plummeting. The overall market average price is down for DC condos but this predates the election results, so it’s not directly related to the recent political and governmental changes. The bigger contributor has been higher interest rates. Chaos has NOT ensued, from a real estate perspective.
How will the governmental changes likely impact our local real estate market this year? Bottom line is there is enough confusion today to cause some buyers to pause their search for a home. Enough sellers will need to sell that we think inventory will finally increase to pre Covid levels. (Not a floodgate!) We have historical trend lines we follow that help us see this likelihood. Is this tragic? Not likely! It would be refreshing for our young buyers to have an easier time finding a home for their families, and for sellers to feel like they can list their home and actually find something else to move into. Our sellers may find a more balanced market with return of home inspections and it’s even possible that prices will stabilize rather than rising like it has YOY in many areas. There are many factors to watch when making this projection! Unemployment, Broader Economic factors, Buyer Confidence, Interest rates, and more. We are watching all these and you can always reach out to us for an overview of your specific neighborhood at any given time!
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