DC Home Prices are on The Rise!

According to the S&P/Case Shiller Home Price Index, the Washington area led the nation in home price increase from March to April.  Median prices in the Washington market rose 2.4 percent in April compared with March, the best gain of the 20 markets they surveyed. The average increase nationally was 0.9 percent from March to April.

The Washington area also posted an impressive annual gain, with median home prices in the area up 7.3 percent in April 2010, compared to April 2009.  (See chart of Home Price Appreciation by state.)

A portion of this increase can be attributed to the $8000 tax credit for first time buyers.  We saw a peak in activity and competition in April, as home buyers sought to take advantage of the credit before the deadline.  In DC proper, settlements were up over 50% for single family homes in April.

With interest rates at all time lows (4.61% for a 30 year fixed), and the $5000 first time home buyer tax credit buying a home in DC, we expect buyers to continue to take advantage of the excellent opportunities, and the local market to remain strong throughout the summer.

Contact us today, if you are thinking of buying or selling a home in the DC area.