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Over the past few weeks, DC realtors have seen an increase in buyer activity and a lack of supply of high quality homes in DC and Northern Virginia. This trend is evident in properties ranging from condominiums in Logan Circle to single family homes in American University Park. We are witnessing a lesson in Economics 101: Supply & Demand.
Are bidding wars coming back to Washington DC?
The short answer is Yes, but only in certain sought-after DC neighborhoods such as Dupont Circle, Logan Circle, and American University Park. DC realtors are seeing 3-4 offers w/ escalation clauses on these high quality properties. The Spring season is the beginning of peak activity for real estate, so we plan to see a slight increase of homes on the market, but there will still be a shortage of homes for sale.
What are high quality homes?
I consider high quality homes to be a combination of location, condition, and pricing. For many first-time homebuyers, the driving force is location with convenience to public transportation, restaurants, shopping, work, and nightlife. In some cases, people are willing to fore-go pricing and condition to be closer to work. It is a direct reflection of the economic climate and high gas prices.
What is the truth about homebuying in DC?
For many potential homebuyers thinking about purchasing a home over the next few months, they are bombarded by drastic varying perspectives regarding the current health of the real estate market. The Washington DC real estate market is in a bubble unaffected by the downturn market because it is fueled by the federal government. According to the S&P/Case-Shiller home price index, Washington DC was only one of two U.S. metro markets in the nation to post an increase in housing prices in the past year.
Washington's average single-family home sales price climbed 3.6 percent from January 2010 to January 2011. Aside for the fluctuating interest rates, the fundamentals of our local real estate market remain constant. Buyers want to get great deals and Sellers don't want to lose their pants! In short, homes that are priced aggressively and in good condition, can expect many offers within the first two weeks.
Hopefully you found this post useful! If you need help finding or selling your Washington DC home, please contact Jason Trotman at 301-452-4767. If you’re new to DC, I’d especially like to extend a warm welcome. I value the opportunity to help my clients find the home that meets their needs and provide them with professional, reliable service.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.