Real Estate Trends in the DC Area Continue to Surge Upward

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As a real estate investor, former attorney and avid real estate enthusiast – when I made it my business to practice full time I already knew what I was getting into. So when the market crashed in 2007, like countless other industry professionals, I was taken aback by the scale and magnitude of this historical occurrence. But today, I write with hope because what we've seen lately only further corroborates what many already know: real estate goes up and real estate goes down.

Today, it is headed up and it’s doing so with steady strength. Now, foregoing all the fancy analytical speak and statistical tools – I just want to point out our reality using the basics as a benchmark. Looking at the simple trends of job growth along with the concepts of supply and demand – we are in a very good place right now.

Buyers Enjoying Great Deals

As we have had for some time now, buyers continue to be able to access extremely low interest rates that have made borrowing cheaper than it has ever been before. Our local jobs market remains one of the strongest in the country with the US government being the top employer in the area. As a result, our economy forges on with strength and we all know what a strong economy means to the real estate market.

Sellers Gaining Leverage

Within this steady growth we are seeing changing patterns in terms of inventory of available homes as well as the number of sales taking place. As inventory continues to decline (at last check the DC area was down 26% from the same time last year) and sales are on the rise – it’s no wonder that our market is shifting. In fact, I’ve been alluding to the shift in our market for some time now. How does it impact sellers? We end up seeing multiple offers, sellers in situations where there are bidding wars driving up the price of the home and sellers realizing they have the upper hand.
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These are just a few of the very impactful elements of what drives our market. To see how this all relates to your situation specifically, we invite you to sit down with us and explore your goals. We’d love to make your real estate dreams become a reality!

The DC Market is Shifting

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In the nation’s capital, the sun is starting to shine after one of the bleakest times in recent American history.  According to RBI (Real Estate Business Intelligence), home prices in the D.C. metro area are up 11.2% in the spring of 2012 to $392,500.  This is the largest gain since 2006.  In fact, depending on the neighborhood in the District, Maryland, and Virginia, prices have remained steady since 2009 or early 2010.

Factors Behind the D.C. Housing Market’s Increase in Home Prices

Once the D.C. housing market started its recovery, prices did not automatically shoot up; instead they slowly increased. Many sellers have been reluctant to put their house on the market due to the strained climate in the real estate market. This has led to a lack of inventory (inventory has dropped 27% over the course of a year) and because of this lack of inventory, the spring of this year has been very good to sellers. Residential interest rates in the D.C. metro have also reached historic lows. Homes on the market are also getting sold at a much quicker rate; in May of this year a property spent an average of 48 days on market, down 28% from May of 2011.

How YOU Can Take Advantage of the D.C. Market
If you have talked to a real estate professional in the past couple years and left feeling pessimistic about the market, now is the time to engage a professional again.  Depending on the community and price point, it may be a very safe time to sell.  The best way to take advantage of the rising home prices in the D.C. metro area is to engage a real estate professional and have a conversation about how to proceed. If you are interested in selling your home, now is the time to talk with a trusted and experienced real estate agent to identify your options!