November 2024

Market Update

Hi Friends,

The biggest question we've been asked since the election is the impact on D.C. area housing. Historically, home sales tend to increase regardless of the winning candidate following a presidential election. Financial markets prefer certainty, and with a peaceful concession, Wall Street responded positively, leading to a post-election surge. According to the National Association of Realtors (NAR), presidential elections generally have a positive effect on the national housing market. The impact is even more pronounced in the D.C. metro area, where home sales often rise by 10% the year after an election.

It will be some time until we understand the election's full influence on the real estate market. This is the most vibrant time in DC with many changes happening and we're here to help any incoming DC residents. We also have a robust network of trusted Compass colleages nationwide if you're anticpating a move.

For now, we're planning Thanksgiving in a few weeks and are just happy we no longer have to endure political ads. We can all be thankful for that!

Warmly,

Sara & Arash

// POST ELECTION IMPACT ON THE D.C. HOUSING MARKET //

Last Thursday, the Federal Reserve announced that it will lower its benchmark rate by a quarter point, or 25 basis points. This move by the Fed was anticipated irrespective of the election's outcome. While predicting the housing market’s exact response is challenging, here’s what we anticipate:

1. Home Sales Increase Post-Election

Data from HUD and NAR shows that home sales rose in nine of the last eleven election cycles, suggesting a trend of growth after presidential elections.

2. Home Values Will Continue to Rise

Due to ongoing low supply in the DMV area, home prices are expected to remain stable or see year-over-year increases. If you’re worried about a potential post-election dip in home values, rest assured—current upward trends will continue.

3. Mortgage Rates Will Drop

Freddie Mac data shows that mortgage rates dropped from July to November in eight of the last eleven election years. With inflation easing and housing affordability being a priority, further rate cuts are anticipated. If you’re considering a purchase soon or in 2025, now is an excellent time to plan (and schedule a Buyer Consultation with us).

4. Housing Stability over Population Shifts

While each new administration brings some shifts, D.C. does not see a mass exodus or influx of new residents. Although home sales may rise, we can predict demand for rentals will increase. This trend presents an ideal opportunity to consider investment properties in D.C.

// UNDER CONTRACT //

7700 Leesburg Pike

4 BD 5 BA 2,840 SF $1,699,831

We secured this beautiful home for our client—the last available lot in a sold-out community—winning over two competing offers! This demonstrates the importance of buyer representation, especially in new construction. Having an advocate on your side is essential when navigating one of the biggest purchases of your life.

Reach out if you need buyer representation for your next home!

CURATED JUST FOR YOU!

What We're Eating!

Josephine's Donuts & GF Bread

We’re thrilled to share our latest find—Josephine's Gluten-Free Bakery in downtown Bethesda! This charming small business offers a delicious selection of gluten-free bread, savory and sweet waffles, and donuts, all made with organic ingredients. The entire menu is gluten-free, with plenty of dairy-free options, too. Don’t miss out on their freshly baked breads and a baguette that rivals any Parisian bakery. Viola!

4927A Saint Elmo Ave

Bethesda, MD

What We're Reading: Look Closer

This thrilling novel is our November pick for the Compass Book Club. Simon and Vicky seem like the perfect, affluent Chicago couple—he’s a respected law professor, and she’s a dedicated advocate for domestic violence victims. But one of them may be a murderer. When a wealthy socialite is killed on Halloween, their lives spiral out of control, making this fast-paced page-turner captivating from beginning to its final twist. Take a closer look at this book for your next read!

Licensed in DC | MD | VA

Sara Azani &

Arash Shirazi

REALTORS®

M: 240.938.6640

M: 202.365.1899

sara.azani@compass.com

arash.shirazi@compass.com

rcollective.net