Local Real Estate Market Update October 2023

Local Real Estate Market Update October 2023

October Market Update

As mortgage rates continue to rise for 30-year fixed rate loans, the Mortgage Banker’s Association reports that for 2 weeks in a row, applications for Adjustable Rate Mortgages (ARMs) have increased to their highest levels since November of 2022, with ARM rates offering a 6.99% – compared to 7.9% for 30-year fixed. ARMs can be a smart strategy to ride out higher rates; ask your Buyer Agent or Mortgage Lender about the options.

What are some other strategies for buying a home during a period of higher mortgage rates?

  1. As always, shop around for the best deal. This means getting quotes from multiple lenders.
  2. Negotiate for the best rate, using the lowest quote as leverage with your preferred lender.
  3. Consider purchasing Discount Points, which allow you to pay more up front for a lower rate over the life of the loan.
  4. Work with your Buyer Agent to modify your target price AND be open to opportunities for homes that have spent a longer time on the market; your Buyer Agent can help you negotiate accordingly.

Now is always the right time to buy the right house; with refinancing options, ARMs, buy-downs and other financing strategies available to you, educate yourself on the options. For more details about these financing strategies, see this article or ask our very knowledgeable Buyer Agents! They are actively helping buyers find their next homes in this market.

A Look at the Capitol Hill Housing Market

Across the District in September, new listings and new pending sales were both up from August, but down from the previous year. Less inventory and higher mortgage rates have slowed the volume in the DC market. Here’s a look at the numbers for 20002 and 20003 for both FEE SIMPLE and CONDO homes.

Activity in almost every category is up in October on Capitol Hill (with another week of transactions still to come). Most notably, for Fee Simple homes we saw a 34% increase in closed homes, as well as 7.4% more NEW listings than in September.

First, Fee Simple Homes (Oct 1 – 25)

Market Demand for Condos remains the highest of any category. Here is activity for CONDOS (Oct 1 – 25)

If these charts make your eyes glaze over, reach out to Joel or the Buyer team to discuss the market on your block, in your neighborhood, and what it means for your real estate goals. It’s not too early to start planning for 2024. Set up a FREE CONSULTATION today!

Pictured: a rare new build luxury home on Capitol Hill, from the craftsmen at SCHMIDT Development. Do yourself a favor, and walk through in 3D!

We study the data, so you don’t have to. We’d love to share our Real Know-How with you!

Call 202.243.7707 or email info@joelnelsongroup.com.