Hello Neighbors! Welcome to the January 2017 Home Sales Report. This series is intended to help readers stay informed of real estate activity in our neighborhoods and share some expert viewpoints on where the housing market may head through the rest of the year.
As you can see, sales volume is still in winter hibernation, with only eleven homes making it to the closing table in the month of January. That is the exact same number from the same month last year, so I’d say it is safe to consider that a trend. The average sales price of these transactions is $515K, including both single family homes and condos in the mix.
Compared with last year at this time, the median estimated home value stands at $729K, a healthy 12% jump from 2016. The estimated value for the District as a whole is $581K.
The median listing price in Shepherd Park+Takoma is $609K, down slightly from last year. Our home ownership rate remains at a lofty 66%, which is a full 25 points above the District average.
The median home age in our area has crept up to a whopping 75 years! That is something to consider for potential sellers, as the next wave of home-buyers are in their mid-thirties and may have very different ideas about home design and space needs than current residents do.
Nationwide, we are still in a strong seller’s market and that is even more so here at home in DC. Patricia Laya of Bloomberg News recently stated, “Consumer confidence jumped to the highest level since 2004, extending a surge in Americans’ optimism for their finances and the U.S. economy following Donald Trump’s election victory (I know). The University of Michigan said that its final index of sentiment rose to 98.2 from 93.8.”
Experts such as Jonathan Smoke, Chief Economist at realtor.com, are saying that they expect interest rates to hit around 4.5 percent by the end of the year. It is true that these rates are higher than what we’ve enjoyed over the past few years. However, Trulia chief economist Ralph McLaughlin has said, “Mortgage rates would have to be a lot higher before they really crimp a buyers’ ability to afford a home.”
These low interest rates and high consumer confidence could potentially combine to make 2017 a very good year for home sellers and home-buyers as well. Sellers will likely enter the market to meet the sustained demand and generate lots of transactions throughout this year.
If you have any questions about buying, selling or investing in Real Estate or, if you’re interested in receiving a free market valuation for your home, you are welcome to contact me today to learn more.
Sales Information provided courtesy of MRIS, LLC.