Based on comments by Federal Reserve Chairwoman Janet Yellen and other top officials, many economists are certain that Fed policymakers will raise interest rates during their upcoming Dec. 15 - 16 meeting. The initial rate hike is expected to be just 0.25 percentage points, and leading minds have indicated that the housing market is likely to continue to see growth through 2016. As you prepare for the Holidays with friends and families, check out these three charts to sound like an expert on DC real estate :)
Red - Single Family Homes
Green - Row Houses & Town Houses
Yellow - Condos & Cooperatives
Average Sale Price: Since 2010, single family homes and row houses have steadily increased in value. A detached home in 2010 sold on average for about $890k, but they now sell for about $955k. Condo growth has been relatively modest. Row homes have just exploded, with the average selling for $725k now, compared to just $490k in 2010...a 50% increase!
Average Price Per Sq Ft: The average DC condo sells for about $500k, and folks are paying a premium for each square foot ($525/ sq. ft. in 2015). If you purchased a house or condo five years ago, chances are it's worth more today.
Months of Supply (Demand): If you're thinking about selling your home, now may be the time, as we are seeing record high demand and record low inventory. This means Sellers are receiving attractive offers, as Buyers are often finding themselves in bidding wars. However, in November 2015, we saw an unusual spike in inventory, so there is speculation that the market is beginning to turn. A completely balanced market in DC is about 4 months supply of inventory, so we are well below that as we hover around two months supply.