Contributed by Christopher Sartorius, Carteret Mortgage
Interest rates are projected to vary within an expected narrow range during 2007. They are unlikely to climb above 7% or decline below 6% for the year, as a regional average rate.
Regional job growth is expected to be strong, with approximately 56,500 new jobs created during 2007, making the area among the strongest local economies in the country. For more information about job growth and the differences between our local economy and the rest of the country, see the Center for Regional Analysis’ report, at: 2007 Forecast (PDF format)
With continued job growth, home sales for the region should increase over 2006 figures, for resale homes, during the course of 2007.
Locally, house prices on average should rise somewhere between 2% - 4% during 2007, based on market trends and projections derived from 2006 results.
While interest rates remain at historically low levels, along with a strong regional economy, it is possible that a seasonal resurgence in the local Northern Virginia housing market may take place during the Spring months.
Buyers at this time have the better negotiating position, as houses remain on the market for longer (more traditional) time periods before selling.
The good news for home sellers is that the Washington metro region is better off than most other regional markets in the United States.
Visit the Center for Regional Analysis Web Site for more information.
Contact Chris at 571-265-3918 or chris.sartorius@carteretmortgage.com
