The highly anticipated meeting by the Federal Reserve ended with the announcement
that many were expecting, a sharp .5% interest rate cut. It's been awhile - this is the
first rate cut to the Federal Funds Rate since March 2020, and though this does not
set mortgage rates, they are closely connected. For those paying close attention to
mortgage rates, however, you'll know that they have actually been dropping for a
couple months now and have reached their lowest level since February 2023. Lower
mortgage rates means lower borrowing costs for buyers.
So what effect have lower rates had on overall home prices in the area thus far?
Speaking broadly, the median price around the region has stabilized slightly over the
past two months, though continued to increase compared to a year ago. These are
broad numbers, however, as not all sub-markets perform the same. Also worth
mentioning that despite a slight dip last month, inventory has slowly continued to rise
in many areas around the region which should hopefully help the market. Remains to
be seen how this will play out in the weeks and months ahead as more buyers enter
the market.
An important takeaway from this for potential buyers and sellers is a reminder to try
and take the time to prepare for a decision once the timing it right for you. With
volatility in rates, it would be helpful to stay informed on what your monthly payment
will look like at a certain number if you plan to get a loan. If you're in need of
resources to help calculate monthly payments or other numbers, reach out directly
for guidance. I've recently heard from buyers, some who are also selling, that they
have their "move" number identified. It's a testament to how savvy entrants into the
market have become.
Stay tuned to see how these changes will affect the market. For any additional
questions or needs, reach out anytime.
DC Metro Area Monthly Market Update
A bit of a late summer swoon in the DC area overall in August as both pending sales
(-1%) and closed transactions (-5.1%) took YoY dips in August, though not so
unsurprisingly after a stronger than anticipated July. Active inventory was actually up
over 25% compared to last year, though it could be weighted heavily by some homes
staying on the market and carrying over previously (new listings were down, -1.2%).
Despite all this, the median sales price still rose +4.6% YoY.
For a full comprehensive breakdown, click below.
Monthly Regional Market Data Reports
Comprehensive reports available available upon direct request or by signing up
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