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.
