The close-in Metro area market continues to improve, showing an 11.4% increase in dollar volume of sales in July over last year at this time. Then, for the 15th consecutive month, the average price increased, which indicates a long term trend of solid improvement. The forecast for interest rates is very good, with the Federal Reserve pledging to keep interest rates in general low for the next two years. More important, the bond market, on which mortgage interest rates depend, appears to be a safer haven for investors than the volatile stock market.
Last but not least, with prices in our area improving for so many months in a row, interest rates continuing to stay at all-time lows, and the availability of a variety of mortgage loan products, real estate is again being perceived as a good investment. Not only will this continue to fuel the market for primary residences, but it should also spur the market for second homes and investment properties.
*Statistics are taken from the Metropolitan Regional Information System for three areas: Washington, D.C.; Montgomery County, Maryland; and Fairfax County, Arlington, Alexandria and Falls Church in Virginia.