The Washington DC Metro area is starting to show signs of Spring, both in the garden and in real estate! Just like those early tulips and daffodils that are poking through the ground, the housing market may be coming back to life after a deep freeze.
Last week the average rate on the 30-year fixed mortgage dipped to 6.15% and the market responded. Nationally, mortgage applications rose 25% from the previous week. Pending home sales for December increased for the first time in a year. Home builders reported the first increase in buyer traffic since December 2021, and according to the latest survey from the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence increased for the first time in 12 months.
Across the Bright MLS footprint which includes Maryland, Washington DC, Virginia, Delaware, New Jersey, Pennsylvania and West Virginia, new purchase contracts were up 5% from last week, days on market decreased by 6 days to 20, and showings increased by 4%.
While DC did not see improvements in the market for the week ending January 22, both Maryland and Virginia did. In Virginia, new purchase contracts and showings were up 5% week over week. Maryland saw a 5% increase in new purchase contracts and 4% increase in showings.
These changes may seem slight, but they offer positive news after many months of declines. As inflation starts to cool and the economy continues to show resilience, homebuyers are showing more confidence. Prices may not be coming down, as many hoped, but lower rates and pent-up demand have sparked the market. This could be a slight blip or a turning point in the housing industry.
If you have an interest in exploring the market, please get in touch! Our agents have the latest data on housing trends and market conditions and can help you buy, sell or invest.