2023 Mid Year Market Predictions

Wondering what's in store for the Greater Washington DC housing market for the rest of 2023?

How is the 2024 real estate market shaping up?

We asked our agents to give us a mid-year update on the market and how you should respond.

As the real estate landscape continues to be dynamic nationwide, the Greater Washington DC housing market is being influenced by a multitude of factors, from economic growth and policy changes to shifting demographics. Fulcrum rockstar agents Sam Khazai, Blair Barrow, and Colin Storm shared their expertise and analysis, shedding light on the trends, opportunities, and challenges that are likely to shape the real estate market in this vibrant and sought-after region.

We asked our agents: What do you think is in store for the real estate market for the rest of 2023 and into 2024?

Sam Khazai Says:

Home prices may fall but inventory will continue to be limited.

Fulcrum agent, Sam Khazai says: “The current interest rate market will continue to have a slightly downward effect on home prices (relative to previous years), but the results will be limited as long as inventory remains constrained.

High interest rates and a longer sales cycle [properties are spending more days on market right now] will cause lagging sales and sagging prices as increased inventory will reduce seller power and increase the leverage of well-qualified buyers.”

The 2023-2024 market will be more balanced than we've seen previously.

It isn't a "buyers market" or a "sellers market" due to supply/demand economics. It's going to be far more balanced going into the new year. As inventory (supply) grows, demand will modulate. The higher interest rates have pushed some buyers out of the market, and remaining well-qualified buyers will have more leverage in a more inventory saturated market.

Blair Burrow Says:

Increasing interest rates might lead sellers to hold.

Fulcrum agent, Blair Borrow makes a great point about the current seller's market. “I think the biggest issue will be fewer sellers because they don't want to give up low interest rates. Because of that, it's a bit of a seller's market. Sellers are getting multiple offers with little to no contingencies. However, overpriced houses are not moving as quickly and I don't see that changing anytime soon.

"If you need to sell, go ahead because the market is in your favor. However, take into account interest rates. If you currently have a low interest rate, factor in how that affects your next home.

Buyers looking to build equity could thrive.

"Now is a great time to buy if you're looking to build equity!

Colin Storm speaks directly to the Virginia market:

High demand for turn-key properties.

Fulcrum agent, Colin Storm, says: “In Virginia; with demand high relative to inventory I think we'll continue to see prices rise, particularly for turnkey properties.

With purchasing remaining difficult, more will continue to rent, or look to renting rather than buying in their community of choice. Driving rental rates up even further."

Sellers are still seeing high returns on their properties

"Demand is very high in Virginia. With the right preparations we are still seeing new high prices in many communities. Even in the slowest of locations in DC and MD it seems places are still selling within a couple months, which isn't bad historically."

In conclusion, as we navigate through the halfway point of the year, the real estate market is poised for an intriguing second half. With a surge in demand, we can anticipate continued growth and competition in the coming months. It is essential to stay mindful of potential challenges such as rising construction costs and limited housing inventory. By staying informed, adapting to market trends, and seeking professional advice, both buyers and sellers can make informed decisions and position themselves for success in this dynamic real estate landscape.