During 2024, our marketplace tackled stubbornly “high” mortgage interest rates. While we had some welcome reduction in rates (to around 7%), the anticipated reduction stalled in the late fall. For most buyers, it became more of “what you see is what you get (or will have)” for the foreseeable future.
While high by the standards of the second decade of the 21st century, we are historically in the middle range of the past 40 years. While not comforting for buyers, it is doubtful we will see the rates significantly lower in the near future. If the rates do trend lower, our housing inventories will remain tight (the closer to Washington DC, the tighter inventory will become) and prices will rise.
What Do The Numbers Show For Capitol Hill
All of the data above shows a strong real estate market that underlies an incredibly vibrant neighborhood growing in desirability. More babies and more seniors bracket our demographics. You watch the children (hundreds of them) on their way to school in the morning (spot the grandparents accompanying their grandchildren to kindergarten). That evening you watch CNBC where the headline of the story is “Why Washington, DC outranks all 50 U.S. states as the best place to retire.” This neighborhood just keeps getting better and better!
A final word about the elections and their impact on our real estate market?
As I wrote in the Capitol Hill Guide last March, as it pertains to the coming elections, my experience says that there usually is a small “bubble” created by the elections. Like clockwork, the showing activity picked up as we moved toward the middle of January. Lots of people moving in and a number of people moving out. Many neighbors rocked by the political change are just sitting tight and adapting! Most never go “back home.”
A very fluid and promising spring market is upon us right now. Lots of people on Capitol Hill now have certainty in their professional and financial lives for the first time in months and are ready to move. Supplemented by newly arrived folks from all over the world, our spring market should be marked by a tight inventory, very high demand and slightly rising prices. If you plan to sell in the next 12 months, now is the time!
Don Denton is an Associate Broker at Coldwell Banker Realty. He can be found at [email protected].
