Real Estate Market Update: MAR ’22
WHAT TO MAKE OF THE CURRENT MARKET
As we look at the months leading up to the typically busy spring market, February offered limited inventory (less than 1 month’s supply) and tight competition, thus driving up the price of homes.
While inventory improved slightly in March, we are still seeing a very competitive buyer’s market. Capitol Hill serves as a microcosm for what is happening in the larger DC-area market.
- 2022 Median Home Price: up 22% from this time last year
- Inventory: .66 months supply, down 54% compared to Feb 2021
We expect the mortgage rate increase (currently ~4.5%) to plateau some of these home prices. We will be closely monitoring the weekly inventory supply, rates, pricing and escalations.
– It’s a great time to sell to maximize your home equity / investment in your home, as limited inventory continues to offer ideal conditions for sellers. Higher mortgage rates should level out the dramatic price increases from this time last year. Even a leveling out at these prices is in record-breaking territory and will prove profitable to sellers, especially those who have owned their homes for more than 3-5 years.
– Buyers, don’t panic! Adjust your home search to the current rates, and consider competitive offers on lingering properties, following the advice of your Buyer Agent of course! Where can you be flexible to win a home in this tight market? In the words of Paul Legere:
“Most of my buyers are adjusting their target to buy the home they can afford at the higher rates,” said Paul Legere, a buyer’s agent with Joel Nelson Group in Washington, D.C. “There has been a pronounced sense of urgency to lock in a mortgage rate and get into a property. In my market at least, buyers are not electing to rent as an alternative.” (More here in CNBC article.)
Also of note: rents in the DC area are predicted to go up in 2022 (so far up around 12.4%), so if you have been saving for a home or condo, it could be time to make your move from renting to a condo or home. For owners with investment properties or those thinking about buying one, the rental market could be lucrative for you.
Regardless of your current housing situation; currently renting, looking to ‘right-size’, relocate, or seek an investment property, consult with our Buyer + Seller experts here at Joel Nelson Group – reach out for an appointment today!
Ready to Chat with Your Neighborhood Experts?
Contact us to set up a personalized consultation to discuss YOUR home goals and best possible timing to make your next move in the market! We can’t wait to share our real know-how with you (or refer us to your colleagues, friends and neighbors)!