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    Could Washington D.C. Be on the Brink of Another Housing Market Crash?

    November 15, 2022

November 15, 2022

Could Washington D.C. Be on the Brink of Another Housing Market Crash?

The housing market is looking very different today than it did a few months ago. Earlier in the spring, Washington D.C.’s housing market was ‘supercharged.’ Housing inventory was low and interest rates were competitive, hovering between 3 and 4 percent during the months of March and April. Fast forward to November, and the current interest rates in D.C. are 7.3 percent for a 30-year fixed and 6.47 percent for a 15-year fixed.

With the market changing quickly, some experts predict a housing market crash that’s worse than 2008! Could this be possible, or is this just unnecessary hype? Let’s explore the facts we have now and your options for selling if you need to sell fast in D.C.

Could We Be on the Brink of Another Housing Market Crash? 

In a matter of months, the pandemic housing boom has turned into a bust. Some reports even show that home prices are falling faster than they did during the start of the 2008 financial crisis. According to an article in Seeking Alpha, here are some of the things we know today:

  • The number of privately-owned housing units under construction is at an all-time high of 1.7 million. However, the prices on these homes continue to decrease. Prices are falling as much as 4 percent in some areas!

  • With so many houses being built, experts wonder who is going to buy all of these properties at a 7.3 percent interest rate. With the current prices, these properties are already out of reach, which means they need another price cut.

  • Housing demand is much less than what it was, and the supply of homes is about to soar. Real-time housing prices are falling faster than in 2008.

  • One of the best indicators of future sales is the number of mortgage applications coming in, and even these are down 42 percent from last year.

  • Experts say the Feds waited too long to hike rates during the housing boom and now need to lower home prices, especially with over 1 million new properties about to hit the market. This exceeds 2006 numbers.

Knowing all of this information and looking back to the 2008 housing market crash, it’s possible that another crash is in our future. However, it’s hard to say what it will look like and how it will compare to 2008.

I Need to Sell My House in Washington D.C. What Should I Do? 

If you have a property to sell in D.C., you’re probably wondering what options you have. You can always try to sell your home with a realtor and see what happens. You might get several offers, or you might get none. It all depends on where your home is located, its condition, its price and other factors.

If your property needs some TLC, you’ll either have to invest the money to fix it up or sell it as-is. With new properties coming onto the market and increasing interest rates, most buyers aren’t looking for a fixer upper. For the money they’re going to pay, they want something new and nice.

4 Brothers Buy Houses is a Washington D.C. home buying company. We offer many benefits to the home selling process, including:

  • We’ll buy your house as-is. Don’t worry about having to make improvements, repairs, updates, etc. We’ll take your house in the exact condition it’s in. Save this money for your new home/rental!

  • We’ll offer you a fair price. We want the deal to work in both our favors. That’s why we will present you with a fair cash offer that you get to keep, as there are ZERO commissions or fees.

  • We’ll close in two weeks. Because our buyers pay in cash, there are no banks to wait on. We can typically close in about two weeks, and we pick up most closing costs.

If you have a property to sell and you don’t want to wait for the market to change in your favor, consider selling it for cash! Get in touch with 4 Brothers Buy Houses to see what we’ll pay for your house. Selling today can help you avoid the potential crash and get more for your property!