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!

How Declining Inventory Impacts Home Buyers In Today’s Market

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The number of homes available on the market today has sharply declined, reflecting the recent jump in sales across the board. Likewise, our inventory has been declining. How does that impact buyers today?  Considering that for the longest time now, buyers have been in control, what the current situation does is it changes the stakes in how quickly buyers need to act. Once their dream home is found buyers will need to act fast and furious to express their interest in the property of their choice.

Multiple Situations With Bidding Wars Galore

Many times nowadays, sellers are receiving multiple offers in a matter of days and sometimes hours after listing. Some homes sales are gaining momentum from the moment the property is displayed on open house despite their not being available on the market as of yet. Even if your offer is on the table with the seller, the buck does not stop there. You will also have to make sure you made a competitive offer that warrants enough attention from the seller. Especially when the property you are vying for is ideally situated in a desirable location, keep in mind that other buyers are just as serious and may be willing to pay top dollar.

Several Factors Influence Buyers’ Strong Demand Today

Whether buyers are anxious to lock in the historically low interest rates still available out there today, or if there is a personal situation such as a job relocation that warrants an immediate need, buyers want to move in today. In addition to the low home prices - which seem to be rising slowly but steadily across the nation - buyers are motivated by the prospect of a changing market that will eventually bring prices and interest rates up again.

Stronger Assertion and Aggressive Offers Are In Order

The only way buyers can expect to get the property of their choice is to present strong, competitive offers that will compel the seller to accept. Gone are the days when buyers were able to leverage their position and get hefty seller concessions. Over our local region we have seen a remarkable decline in the number of homes available on the market – sometimes as much as 30% less than what they were just a year ago. The numbers are staggering even when you look at one month after another – and this trend does not seem to be slowing down.
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If you are considering buying a home before it becomes an impossible dream to find your perfect home, contact us today!  We have some great ideas on how a savvy buyer can compete and increase the likelihood of getting the contract. Not only that, with my legal background we will make sure there are added provisions in the contract that protect you. We look forward to serving you!

Washington DC Market Continues Shift In a Positive Direction

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Many sellers have been sitting on the fence about whether or not to list their homes on the market. The market has been an ever-evolving one and in our local area we have seen continuous improvement since 2009.  It was then that we began experiencing stronger sales and slow yet steady recovery.

Today, we are still at that teeter tottering steady level of sales but there is a remarkable change in our market that has changed the stakes.  Now, for the first time in several years, we are reporting a dramatic decrease in available homes on the market.  This lower inventory is significant as it drives our marketplace toward higher prices and corresponding stronger home values.

Inventory Down Significantly Across the Area 

SINGLE-FAMILY HOMES

Looking at the numbers from the previous year as compared to the same time frame in 2012, the first four months of the year logged an unremarkable 1.4% fewer homes sold in the Montgomery County (Maryland) area.  The big news, however, is that we are reporting a sizable decrease in the number of available homes at 15% less than the previous year.

Similarly, the end of 2011 marked a 30% decline in inventory as compared to the previous year in the Washington DC market.  What is interesting is that the number of homes sold does not correspond with inventory figures.  In other words, the buyers that did buy about the same number of homes in 2011 had only 70% of the previous year’s inventory availability to choose from.

CONDOMINIUMS AND COOPS

As was apparent in single-family homes, condos and coops also experienced a relatively stable number of sales from one year over the next but the noteworthy activity took place in terms of inventory.  The number of new listings available on the market saw a 26% declined in 2011 as opposed to in 2010.
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In light of today’s changing market it is a good idea for homeowners considering selling their homes to list now while they can enjoy favorable market conditions conducive to sellers’ interests.  Multiple offers, bidding wars, lesser or no need at all to offer concessions to buyers plus a very quick turnaround time to sell are all great reasons to list now.  If you would like to explore your options, learn what your house would sell for today or review some trade-up properties to move into, contact us today!  Our success is in your success and we look forward to helping you achieve your real estate goals.