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 R&R Team Blog:


*Dulles Market Corridor (DMC) (Updated As of: 10/19/2018)

(Source: The R&R Team, Inc.)

As owner of The R&R Team and as a graduate economist/research analyst, I take great pleasure in completing monthly analyzes of the *Dulles Market Corridor (DMC) residential real estate market and in providing the results of these analyzes to our clients in this blog. We strive to ensure that the analyzes are consistently accurate by using only highly reliable data. For those of you who have followed these analyzes for the past 20+ years, we believe that you will attest that the analyzes have been quite accurate in providing real-time assessments and forecasts of the local real estate market. Besides the market summary and forecast that follows below, we also provide important recurring updates to individual  market status indicators (current mortgage interest rates, etc.) that you also may find of interest at the bottom of this blog. 

MARKET SUMMARY & FORECAST:  The DMC real estate market thus far in 2018 has been driven by low inventory levels and good buyer demand. At the beginning of the year, resale property inventory levels were only 20-25% of normal and, while improving since then, are still only 50% of normal levels for this time of year compared to the same time periods during past years. While inventory levels have stayed low, the data indicate that we have had a very good buyer activity and a robust 2018 spring market resulting in home prices appreciating on average at 1.1% per month during the 3 months comprising the spring market (March-May). However, because buyer contractual activity has drop since May, average property appreciation has dropped significantly and is currently holding at only +0.1% per month. In the past 30 days, we have seen an unexpected surge buyer contractual activity that likely may be attributable to buyer anticipation of further increases in mortgage interest rates that have suddenly increased by 0.3% in the past month...if this unexpected buyer activity continues, property values may not drop or depreciate as is normally expected in a typical DMC fall/early winter market.     

Besides low real estate inventory levels and reasonably good buyer demand, the other major factor that may have significant impacts on the real estate market going forward may be  increasing mortgage interest rates. Based on the upswing in U.S. economy performance indicators, the Federal Reserve Board at its September meeting increased the prime interest rate for a fourth time in 2018 and the Fed indicated that they plan to possibly make at least one more rate hike yet during 2018. These increases are to offset inflationary pressures in the improving U.S. economy. Thus far in 2018, we have seen the 30-year fixed mortgage interest rate increase to its highest level in over 7 years with the Freddie Mac weekly survey indicating an average rate of 4.85% this past week . Many pundits predicted that added Fed rate hikes may likely result in a 30-year fixed mortgage interest rate of 5.0% by the end of 2018 and it looks like this may happen. These increasing interest rates may serve as a knock-out punch for some homebuyers, particularly first-timers.  

Our most recent analyzes of market absorption rates indicate that we continue to have a sellers market in the DMC. The market absorption rate for single family detached (SFD) homes indicates that we currently have only 2.0 months of available inventory, while the townhouse market absorption rate indicates 1.1 months of available inventory and condo data indicate 1.4 months of available inventory. FYI: Market absorption rate represents the number of months needed to sell off existing inventory for a particular property type based on recent buyer activity. Real estate pundits nationally and regionally indicate that market forces typically need to stabilize home inventory levels at a 3-to-4 month-supply-level to constitute a normal or balanced market (where economists say that supply and demand are in equilibrium). A market absorption rate that falls below this norm indicates a sellers market, while a rate that is above indicates a buyers market.

Our current market prospectus is to expect continued job growth in the Capital Region, to have continuing lower than normal residential real estate inventory levels, to experience reduced but reasonable buyer activity, to have higher but yet still attractive mortgage interest rates and to have rather steady property values during the remainder of 2018. Overall, the DMC real estate market should continue to be healthy in the forseeable future. 

For sellers and buyers who are already in the market or planning to enter the market in the near term, we highly recommend that you also monitor on a continuing basis the latest detailed data for each of the individual market status indicators that are provided below. 

(*NOTE: The Dulles Market Corridor (DMC) encompasses the large market area of Herndon/Oak Hill, Reston, Sterling/Potomac Falls/Dulles, Ashburn/ Broadlands/ Brambleton, Leesburg/Lansdowne, South Riding/ Chantilly (Loudoun County), Stone Ridge, Aldie/ Arcola and Chantilly (Fairfax County). The R&R Team has been tracking market data closely in the *DMC for the past 20 years.)  

Have a question or a comment? Please send us an email or call us at 703-625-5586.




CURRENT 30-Year Fixed Mortgage Rate in the Capital Region (10/18/2018):

(Source: Freddie Mac weekly survey)

4.85%  (0.5% origination fee/discount point)


CURRENT Market Appreciation/Depreciation in the *DMC (10/16/2018):

(Source: R&R Team analysis using MLS data)

+0.1% Per Month


CURRENT Market Absorption Rates in the *DMC (10/16/2018):

(Source: R&R Team analysis using MLS data)

SFDs: 2.0 Mos         THs: 1.1 Mos       Condos: 1.4 Mos


CURRENT Days on Market Before Going Under Contract in the *DMC (10/16/2018):

(Source: R&R Team analysis using MLS data)

SFD: 45 Days        THs: 29 Days       Condos: 35 Days


 If you have questions or need assistance, please call 703-625-5586 or send us an email.

 The R&R Team, Inc.