Washington DC Housing Market is on fire !!
Commercial Flights to Manassas Virginia??
Washington, D.C. Metro July 2023 Market Report
The summer of 2023 has seen a significant surge in real estate prices within the D.C. Metro area. In what was initially expected to be a slowdown, the median sales price peaked at $590,000, representing a growth of 4.8% compared to the previous year. Even more intriguing is the fact that suburban regions, traditionally seen as more affordable, recorded faster growth rates. This trend is atypical and reflects the changing dynamics within the housing market.
July marked a historical low for the D.C. Metro area in terms of new listings, down a staggering 34.4% from last year. This resulted in only 5,731 active listings by the end of the month, a decrease of 29.3% year-over-year. Such a low inventory has significant implications on the buying dynamics, pushing prices upward on the few homes on the market.
The Bright MLS T3 Home Demand Index provides key market performance insights. In August, it reported a decline to 81 from July's score of 91. This drop underscores the challenges posed by limited inventory. Despite this, July still reported 4,360 closed sales. However, this number is still a 20.1% reduction from the previous year. Additionally, properties, especially detached homes and condos, stayed slightly longer on the market.
Challenges on the Horizon
As the D.C. Metro area transitions into the autumn season, certain challenges are becoming increasingly apparent. The foremost concern remains the dwindling inventory coupled with increasing questions about property affordability. Although there are speculations about a minor dip in mortgage rates, projections suggest they will remain around the 6.5% mark. For buyers, this might mean either adjusting property expectations or extending search areas.
Highlights from Local Markets
Northern Virginia offers a diverse landscape in its real estate trends. Alexandria City reported a modest 1.2% rise in its median sales price. Conversely, Arlington County faced a 3.0% decrease. Fairfax City and County were standout performers, boasting impressive growths of 9.1% and 8.0%, respectively. Maryland's Frederick and Prince George's County showed robust growth, with median prices rising by 7.8% and 7.4%. However, the heart of the Metro area, Washington, D.C., experienced a dip of 3.3% in its median price.
The current scenario in the D.C. Metro area epitomizes the challenges of a high demand, low supply market. Potential homeowners might need to brace themselves for heightened competition, potentially adjusting initial home preferences. Sellers seem to be in a strong position, but many could hesitate to list their properties due to previously attractive mortgage rates.
The one constant throughout the region is that new listings continue to be well below averages, with some areas 40% below where they were last year. Many regions have less than a month’s inventory available to potential buyers. With the busy summer season winding down, it’s unlikely that the supply issues will abate before 2024. Both buyers and sellers should keep an eye on interest rates and next month’s sales figures to see how the market trends evolve.
Manassas to Have Commercial Flights??
Manassas City Council has green lighted a transformative expansion of the Manassas Regional Airport, sanctioning the introduction of commercial passenger flights. Currently the leading general aviation airport in the commonwealth, the facility accommodates approximately 100,000 flights annually. However, with the aviation management company, Avports gearing up to make an investment close to $125 million, the airport is on track to magnify its terminal size threefold, accompanied by other enhancements.
Once this ambitious expansion reaches fruition, the airport has the potential to host up to 30 passenger flights daily. Emphasizing the strategic vision behind this move, the Manassas Regional Airport Commission's head clarified that this is not an endeavor to rival existing giants like Dulles International or Reagan National Airports. Instead, it envisions being a supplementary service with a capacity capping at four to six gates.
The community is abuzz with anticipation, not just because of the impending infrastructural changes but also the economic impetus it promises. Many locals are optimistic about the job opportunities and heightened profile the upgraded airport would bestow upon Manassas.
From a real estate perspective, this enhancement could signal a bullish phase for the residential property market in the vicinity. The expected surge in job opportunities, increased city visibility, and improved connectivity could potentially attract a larger pool of homebuyers and renters, thus elevating property values and demand in the region.
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Chris Colgan
EXP Realty LLC
Licensed In Virginia VA DPOR # 0225 075803 703-485-1435