2015 Washington D.C. Real Estate Market
What to Expect this Year in DC Real Estate
As we raise our champagne glasses and toast to a fruitful 2015, many real estate buyers, sellers, and investors alike wonder what the future of the Northern Virginia and Western Maryland real estate market holds. The Washington DC area draws international relocations in huge numbers. This is because commerce, government, technology and diplomats reside in the Nation’s Capitol to conduct business and make contacts. The real estate market is stable in Washington, DC, and the quality of life enjoyed by it’s residents make it a mecca for international relocations.
Here are five predictions:
- Home prices will continue to produce double digit gains. Even with concern over interest rates and inflation, Washington D.C. housing values continue to show amazing growth. local economists are even so bold to predict that D.C. and Northern Virginia home values will reach their 2005 peaks in 2015. A brave claim to be certain, one that only time will prove.
- Federal monetary policies will hold mortgage rates steady for 2015. After much speculation, Fed Chair, Janet Yellen, announced in late December that the Federal Reserve will be holding interest rates steady for most, if not all, of 2015. Those home buyers in Virginia and Maryland looking to finance their next home can take a deep breath and plan accordingly.
- Housing inventory will increase. As real estate values increase, homeowners are removing their scuba gear and getting out from under water. The ability to list one’s home at a profitable price and increased demand for new construction will give housing inventory a boost it needs in the Washington D.C. region.
- First-time home purchases will increase. Since 2009, first-time home buyers couldn’t catch a break and therefore exited the Washington D.C. residential real estate market. From tighter credit regulations to higher down payment requirements, buying your first home was often unattainable. New down payment programs through Freddie Mac and Fannie Mae bring new opportunities for first timers to make their first purchase.
- Neighborhood reputation and convenience will be paramount. While trendy neighborhoods come and go, certain home buying preferences remain true. Purchasing real estate in reputable areas such as Loudoun County, known for its equestrian lifestyle, will continue to outperform lesser known locations. When considering a more urban locale, resale will always remain strong in close proximity of public transit and respectable school systems.
There is no denying that a crystal ball was not consulted to write this post, but 2015 brings an undeniable buzz of optimism with regard to Maryland and Virginia real estate potential. Real estate investors must keep in mind that, historically speaking, annual housing returns have produced 6-7%. Thus, after seven years of real estate volatility, data suggests a smoother ride to come.
Contact Gene Mock, Associate Broker, Premier Team, Keller Williams Realty
703-342-8100 for more information, at no obligation.