An increase in median sales price was once again experienced throughout most of the Washington, D.C. region in June, according to the Long & Foster Real Estate Market Minute Report. Last June, the median sale price for Washington, D.C. homes was $618,305. This June, the median sale price was $700,000, an increase of 13% or $81,695 compared to last year. The current median sold price is 2% higher than in May.
In June, the average sale price in Washington, D.C. was 102.0% of the average list price, which is 3.3% higher than June 2020. Homes sold quickly with an average of 23 days on market, lower than June 2020, which was 27 days on market, a decrease of 15%.
Lately, many of the real estate headlines are all about the current seller’s market and how it is the best time in history to sell your home. Larry “Boomer” Foster, president of Long & Foster Real Estate, also provided us with a few good reasons why it’s also a great time to buy a home.
“Interest rates are at all-time lows,” said Foster. “People buy payment; they don’t buy price. They don’t necessarily care how much a house costs, but they care about how much it will cost them per month. You are going to get more money lent to you now, costing you less to pay back than you would when rates go up.”
Foster noted that when you compare a $300,000 loan at 8%, which is where rates were in 2000, to a $300,000 loan at 3%, the difference in price per month is $750 in interest. “I can think of a lot of things to do with $750 per month than give it to the bank,” said Foster. “There are also other advantages to owning a home including tax benefits, building equity, and hedging against inflation.”
Our job as real estate professionals is to read further into the headlines and educate our clients and consumers to make the right decisions for their real estate needs, Foster added.