Many indicators suggest healthy DC housing market
Over the course of the summer, the DC housing market saw some significant gains. This positive movement was caused by a host of factors, including increasing buyer optimism, limited foreclosures and historically low interest rates on mortgages. However, one of the most important causes for this steady improvement is certainly the region's economy. Numerous recent reports have highlighted the District's thriving job sector, which may be good news for those thinking of buying one of the homes for sale in Washington, DC.
One of the most important ways to gauge an area's economic vitality is by its unemployment rate, and in that regard the District is faring about as well as anywhere in the country. A recent report from the federal Bureau of Labor Statistics revealed that the number of jobs in DC grew by 13,100 in July and that the number of unemployed residents decreased by 600.
This news prompted mayor Vincent Gray to say that he is quite optimistic about the city's prospects in the coming months.
"Having unemployment under 9 percent citywide is a huge milestone," he said, according to the Huffington Post. "I'm proud of the work we've done to put DC residents back to work.
It's not just decreasing unemployment that is strengthening the region's housing market, however. The residents who have jobs are, on average, making more money. In fact, a recent report from the University of Toronto's Martin Prosperity Institute (MPI) revealed that the District experienced one of the country's largest wage increases between 2010 and 2011.
According to the source, DC and the surrounding areas of Arlington and Alexandria saw their average resident's wages increase $1,420 during this period. Combined with the fact that the District already has one of the highest average yearly incomes - now raised to $63,720 - this fact is sure to lure more residents to the city, further improving property values.
With these statistics in mind, it is unsurprising to learn that residents of DC are the most economically optimistic in the country. According to a recent Gallup Economic Confidence Index, District residents are significantly more hopeful about their financial prospects than anywhere else in the country. In fact, with a score of 29, the nation's capital outperformed every state in the country by at least 35 points. Every other state received a negative score.
All of these factors should comfort anyone considering buying real estate in Washington, DC, as they prove the city is one of the most financially stable areas in the country.