|Dear Friends & Neighbors –
We know everyone’s getting excited about the total solar eclipse next week. But just like with real estate transactions, we never want to see our clients get burned – make sure you pick up a pair of eclipse glasses! Here is the inside scoop on places handing these out for free so you can view this astronomical event safely.
With everyone in the midst of their summer vacations, year-over-year comparisons show a decline in housing inventory levels for the 15th month in a row. Not to mention that the strong economic recovery in our region has prompted a record “July high” for sales price. These statistics might appear great for sellers, but have shown that DC homes are actually overvalued. That means they are at least 10% higher than the long-run sustainable level (determined by factors such as average disposable income). Many are able to leverage the currently low mortgage rates to make a purchase, and Fannie Mae is even raising their “debt-to-income ratio” to 50%! But these statistics are still dissuading some potential buyers.
As more people are waiting for the right home, the sale process should slow down, allowing inventory to creep back up. This has happened before: after the big influx of inventory in 2008, levels began to decrease until 2013 (at a level 22.5% lower than our current stock). Supply increased during 2014-15, and is now cooling again. So the market certainly isn’t frozen. “Flipping” has actually been on the rise in the Metropolitan area, as shown by this Arlington family. But there are always buyers and sellers looking to dive in; just part of the circle of life!
Wydler Brothers is Growing!
We would like to introduce you to the newest member of our brokerage