Home sales increased by 7% overall in the Washington, D.C. region in December, according to the latest Long & Foster Real Estate Market Minute Report. Neighborhoods with the largest increases include Chevy Chase DC with an 82% incline, followed by Cleveland Park and Kalorama with a 54% rise. 

Home sale prices also rose up across the region, with Foggy Bottom and West End exhibiting the hugest increase with a 43% hike. Though the rest of the neighborhoods in D.C. displayed smaller inclines ranging from 4% in Columbia Heights and Mt. Pleasant to 22% in Capitol Hill (SE). Inventory took a dip, with Logan Circle and Dupont having the largest decline of 62%.  

The Long & Foster Real Estate Market Minute report provides data for 15 neighborhood areas within Washington, D.C. 

“The market is shrinking, with the number of homes on the market continuing to contract,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. Foster said that declining inventory is going to start being reflected in the number of units sold as the market becomes more competitive. 

There are an abundance of buyers looking for houses as well as ample credit to give. Most people’s investment portfolios will most likely look a lot different today than a year ago due to all these positive changes and Foster predicts the stock market will continue to climb upward.  

For those contemplating whether renting or buying is the best choice for them, Foster said that buying is always a better choice if you have the money to put down and you’re planning to stay in the area for at least 24 months.  

With buying there’s plenty of benefits and incentives that you simply don’t get with renting, such as tax benefits, the ability to write off your mortgage interest and home price appreciation every year. Those who long for a more flexible lifestyle though would be better suited for renting as it provides the ability to move on a whim. 

With home buying, the first question one needs to ask is whether they qualify. Talking to a loan officer from Prosperity Home Mortgage will ensure you have the appropriate down payment, credit and other qualifications so you are prepared for homeownership.  

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.