Units sold rose throughout most of the Washington, D.C. region in August, according to the Long & Foster Real Estate Market Minute Report. Southwest and Waterfront demonstrated a whopping 73% increase, followed by Capitol Hill (SE) which had a 54% jump. Home sale prices also inclined all over, though Spring Valley and Wesley Heights and Penn Quarter and Shaw saw minor declines. 

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

“We speculated when the spring market started later, that it might subsequently trickle into fall and that is evident in August’s numbers,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. Though we have yet to see what September’s numbers will look like, Foster believes that September will continue to showcase high numbers and a robust market. 

This is due to mortgage rates being at all-time lows and many home buyers and sellers wanting to take advantage of that. While a presidential election year characteristically features a slowdown in the months leading up to the election, Foster anticipates this year to be different from others. The real estate market has remained strong since it witnessed growth in June and with low interest rates and consumer sentiment steadily rising, the market is expected to continue performing well until the end of September, if not longer. 

With the Federal Reserve planning on keeping their interest rates near zero until 2023, many believe that this means mortgage rates will also stay low. However, though the federal funds rate and mortgage rates have historically been directionally similar, there is no direct correlation between the two. Foster encourages people to instead watch the 10-year treasury yields, for a better indicator of the 30-year treasury yield and the mortgage rate. 

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.