Previous Month: May Home Sales Report
Dog Days of Summer
Though the weather is heating up, the national real estate market is not. The lack of homes on the market is reaching critical levels in many major markets, including right here in Washington, DC. Good consumer confidence and job prospects has increased buyer demand, but home builders have yet to return to the playing field after striking out during the Great Recession. As a result, home prices are climbing over and above the levels we saw during the last bubble.
Unlike during the bubble, however, prices seem to be remaining within the historical trend lines.
Doug Duncan, Chief Economist of Fannie Mae says, “Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates. However, the tight supply of homes for sale continues to act as both a boon to home prices and an impediment to affordability.”
As you can see in this chart from the National Association of Realtors, housing affordability is beginning to suffer compared to recent years (the bigger the line, the better.) This may be part of the reason that first-time sellers are hesitant about making a move. However, if you compare today’s index with the historical trend back to the early 1990s, we are still in good shape.
The local market continued to creep along at a glacial pace. Here is the Fee Simple market activity for June for Shepherd Park, Colonial Village, North Portal Estates and Takoma:
As always, if you have any questions about Real Estate or if you would like a free, no obligation estimate of your home’s value, please contact me with the information below. Have a great month!