Washington, D.C.'s Market to Return to Peak By 2015


Market trends in the Washington, D.C., region indicate that housing values will return to 2005's phenomenal highs within five years, says an economist who studies regional growth at George Mason University in Fairfax, Va.

Dr. Stephen Fuller, speaking to members of the Northern Virginia Association of Realtors on June 17, said the Washington housing market has recovered 10 percent to 12 percent of its value in the past year after being down 25 percent to 30 percent at its lowest in 2008.

Despite a forecast of higher interest rates by year's end, and an increase in taxes for many as tax cuts implemented in 2003 expire, Washington houses should fetch prices similar to those at their 2005 peak by 2015, according to Fuller.

And the northern Virginia market, he added, is likely to return to peak values sooner -- by 2014.