Temperatures throughout the D.C. area have dropped significantly over the past couple of weeks. However, the housing market is expected to continue rebounding over the next few months. Local real estate agents are impressed that the market didn’t slow down as it usually does by the end of the summer, which an encouraging development for sellers as well.
Low Inventory Creates Seller’s Market
Donna Evers, a local broker, said that agents have been surprised that the housing market has remained so vibrant over the last couple of weeks. “Demand for homes in the city really never slowed down this summer, the way it normally does, and we expect the momentum to continue right into the fall,” Evers told The Washington Post.
There are a number of factors that appear to be driving the recent housing boom. One of the most significant factors is a lack of inventory, which has created a market for sellers. Mayor Muriel Bowser has taken over some of the affordable housing projects that her predecessor, Vincent Gray began before leaving office. However, the limited housing supply is still driving up prices and giving sellers a strong edge in the market.
A growing number of millennials are also spurring demand for houses. Baby boomers have also been relocating to the D.C. area to purchase retirement homes, which is creating a demand for smaller housing units. Public transportation and other infrastructural improvements have helped make the city more attractive to the aging demographic.
David Charron, a president of listing service MRIS, recently wrote that the housing market has also been stimulated by the diverse range of housing units. Washington D.C. has a number of single family units, condos and multi-family complexes. The wide range of housing options is important as most Americans seek more heterogeneous communities.
Developers May Focus on Creating New Units in the Spring
The unprecedented rise in housing demand indicates that the market is on rising over the long-term. Many contractors have focused on upgrading existing units to lift prices, but may change their focus as the market continues to grow. Charron and other experts speculate that they may change their goals and start building new units in the near future.
Construction may be more focused on the outskirts of the city. A lot of construction has taken place near Capitol Hill, since that is the prime living destination for many residents. However, the area has become too crowded, which means that developers will need to turn their attention to constructing in other parts of the city.