The Washington, D.C. housing market is not showing signs of collapse despite speculation on social media that a large influx of inventory is hitting the market. In reality, the data from Altos Research suggests that the market is operating within normal boundaries.
According to national inventory data, the D.C. metro area’s inventory levels are significantly above the all-time low of 240,497 recorded in March 2022. However, the current week-over-week increase in inventory was modest, and the market has not experienced a surge similar to what was seen in 2018.
New listing data from Altos Research also indicates that homes are coming to the market without immediate contracts, but at a rate lower than expected. Last year’s forecast predicted 80,000 new listings per week during peak months, but this year’s actual numbers came in lower.
Price-cut percentage data suggests that stressed sellers are not yet materializing in the D.C. market, with only 33% of homes experiencing price cuts last week compared to the national average.
The 10-year yield and mortgage rates also show no significant stress in the market, with mortgage spreads improving over the past two years. However, purchase application data remains flat this year, suggesting that consumers are cautious about taking on debt at current interest rates.
Weekly pending sales data indicates a slight decline in year-over-year growth due to rising mortgage rates, but the D.C. market is still showing higher growth compared to 2023 levels. With key housing data releases and Federal Reserve speeches scheduled for the upcoming week, investors will be watching closely for any indications of market stress or stability.
Overall, while speculation on social media may suggest otherwise, the data from Altos Research suggests that the D.C. housing market is not showing signs of collapse, but rather operating within normal boundaries. As always, it’s essential to monitor key economic indicators and stay up-to-date with the latest news and trends in the housing market.
Source: https://www.housingwire.com/articles/the-impact-of-job-cuts-on-the-dc-housing-market