It's a buyer's market in DC

It's Time, DC Buyers

Timing is key to opportunity, and the time is now.

Have You Looked At The latest DC Market Data?

Prices are down across the board, days on market are up, and so’s inventory. How much better do you think the market is going to get before the Fed starts cutting rates and DC returns to a cutthroat seller’s bonanza?

The March 12th CPI Numbers

  • As CNBC’s Jeff Cox reports:
  • Consumer prices rose 0.4% in February, up 3.2% from 02/2023;

  • The increase for core inflation is forecast at a 0.3% gain, also 1/10th of a percentage point above Jan. 2024;

  • Stubborn inflation almost certainly means the Fed rate cuts will be pushed out, possibly into the summer.

Why not wait until rates decline?

Because that’s what most buyers will do.

We know it’s coming. The Fed has said so, market and finance experts have said so, and it just makes sense. The only questions are; “When?” and “How low?”

According to MarketWatch, Fannie Mae and the Mortgage Bankers Association analysts predictt rates will fall throughout next 2024 and into next year. Fannie Mae economists expect rates to drop below 6% by Q4 2024. The MBA’s forecast for Q4 2024 is 6.1% and 5.9% for Q1 2025.

There are no guarantees in real estate (or life), but you can count on this:

  • Lower rates will increase buyer activity and competition;
  • Inventory will remain too low
  • These conditions will put upward pressure on prices.

So unless you want to pay more for a home, the time to buy is now.

Then there's that commission thing...

If you haven’t read our page on commissions, do. And factor it into your timing.

Right now, sellers are still covering buyer agent commissions. According to experts, and if the DOJ has its way, that practice–as we know it–is going to end.

That could mean buyers will be required to pay out-of-pocket for their agents’ commssions, in addition to downpayment and closing costs. A definite factor in the cost of waiting to buy.

Let’s review:

  • Prices are down
  • Terms are friendlier than usual
  • Rates are slated to decline in the next 2-12 months
  • Your interest rate can be refinanced, the price you pay for a home is ‘forever’
  • Your agent’s commission is currently covered by the seller, and built into market pricing. When ‘cooperativce compensation’ goes away, the likelihood is that you’ll pay out-of-pocket or as an ‘add on’ concession, and pay more for representation due to commission-inflated market values.
The Isaacs Team | Compass

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