WASHINGTON — Many homeowners are taking advantage of the market’s low- interest rates to refinance their mortgages and lower their monthly payments. As a result, fewer people are bidding on new homes, compared to last year at the same time.
Montgomery County saw a 12 percent dip on bidding contracts, compared to last year; D.C. bids are down 7 percent.
“The motivation for some people to move, especially if they’re move-up buyers, has sort of dissipated,” says Eldad Moraru of Long and Foster. “People are comfortable.”
Contracts may be down, but there are a lot of properties on the market, according to data from the Greater Capital Area Association of Realtors.
“There have been a lot of first-time home buyers moving into the area and absorbing [condos],” says Moraru, who predicts these condo owners will opt for single-family homes in the future as their families grow.
Single-family home prices stayed steady between this August and last, with the average home price in D.C. at $625,000 and the average home price in Montgomery County at $474,000.