What to Expect in the DC Market in 2017

In the D.C. and Montgomery County markets, a few select forces are really driving the market.

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What can you expect in the Washington D.C. market in 2017?

Basically, we expect a brisk market in 2017, and we’re already experiencing it right now in February. In particular, there are three trends we’re watching:

1. Inventory of available homes. In D.C. and Montgomery County, inventory is very low, which has been true in the District for a while but is a bit surprising for Montgomery County. This could change as we get further into the spring market.
2. Average prices in the area. In the District, we had a 7.7% increase in the average sales price coming out of last year, and we expect something along those lines to continue. In Montgomery County, the average sale price increased about 6%. Interestingly in Montgomery, it’s getting close to the high prices of 2007. In D.C. however, prices have already exceeded the high prices of 2007.
3. Days on market are low coming into 2017 and we expect that trend to continue. Half of all houses in the District sold in fewer than 14 days and in Montgomery County, half of all houses sold in 37 days or fewer.

Interest rates are another driving force we’re aware of in this market. Rates have been rising and dropping and are a bit volatile. Buyers are concerned about a serious rise in interest rates, so they’re getting out there and making offers. We also expect credit availability to improve and remain strong so that more buyers can come into the market.

Interest rates and inventory are the two driving forces in our market right now.

If regulations are loosened in the mortgage industry, that could significantly affect the market. We will have to wait and see if that happens.

Another factor is that we expect inventory of homes to increase as we get further into the spring market. Since it’s currently a very strong seller’s market, this will be very helpful for buyers in both D.C. and Montgomery County.

Hopefully you find this information helpful. If you’re thinking of buying or selling a home or you have any questions we can answer, don’t hesitate to give us a call or send us an email. We’d be glad to help.