A Lack of Homes for Sale – Not Sequestration – Key to Health of Our Real Estate Market

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A funny thing happened here in the Washington, D.C., area while the rest of the nation went through our years-long economic downturn. Our local economy grew.

Earlier this year, The New York Times Magazine reported that our regional economy has expanded three times as much as the nation’s economy. In fact, three of the top 10 richest counties in the United States are around D.C. in Virginia and Maryland. 

With 40 percent of D.C.’s economy tied to federal spending, there has been much speculation about how the budget sequestration will affect us locally. Any change in federal spending, according to one source cited in the article, might soften the market, but certainly not cause a crash.

Of course, we at Eng Garcia Properties are most concerned with the effects on our real estate market. From my perspective, the low levels of real estate inventory – not the federal budget cuts – have the most potential for dampening our local economy.

I’ve talked a lot recently about the lack of homes on the market in D.C. and nearby in Virginia and Maryland. Locally and in nearby counties, we are looking at two straight years of 25-to-35 percent inventory reductions. Just 24 to 36 months ago, we had twice as much available housing stock as we have in early 2013.

We at Eng Garcia Properties are here to help you navigate this tight real estate market, whether you are a buyer or seller. Please call or email us, and we’ll be happy to answer your questions and get started.