A Message From the Broker
The second quarter housing results for the NOVA, Washington, D.C. and Montgomery County jurisdictions are in and the results show a strong market restrained only by the continued lack of inventory. The frenetic early spring market continued its march straight into the early summer selling season with overall strong unit sales (relative to available inventory) and moderate sale price increases. Two of the three jurisdictions showed avg sale price increases with NOVA leading the way-up 3% and Montgomery County up 1%. Washington, D.C. fell short with a 2.5% decrease. Sellers continue to enjoy the benefits of this market putting them in prime negotiating position resulting in full price offers, short selling times and strong buyer competition for their properties.
Going forward into 2019 and beyond, there are many factors (both negative and positive) that may be predictive of what the housing market has in store for buyers and sellers. The depressed inventory levels are playing a major factor in the Greater DC market constraining unit sales but also pushing up pricing on available homes, thereby freezing out some potential buyers. The current forecast for available homes have recently been revised for the NOVA markets reflecting significant declines that could have a debilitating effect on what could be an otherwise very robust housing market. The housing shortages can be attributed to several factors, none of which will change in the short term. Sluggish new construction levels, competition between boomers and  millennials (vying for the same homes) and strong investor interest have further exacerbated the low inventory issue. In addition, a booming economy, historically low unemployment, and millennials entering prime home buying years have put additional pressure on available homes making our housing market extremely competitive. Finally, the “Amazon Effect”, whereby homeowners are choosing to rent their homes instead of selling, has also made its impact felt. Inventory levels will continue to be the bane of our housing market.
Still, 2019 portends many positive factors for our housing market. The influx of high tech companies, investment in
educational infrastructure, gains in high paying professional jobs and no sign of declining buyer interest will continue to
make our housing market the envy of many other housing markets. Lastly, local investment in transportation modes across the region as well as the on going redevelopment projects will continue to be an attractive factor for those companies looking to relocate or expand. It’s been a wild ride so far this year, let’s hope it continues!

– Jim Lyons, Associate Broker

You can read the full market report for our area here.