It is considered common sense that wisdom comes from experience. As it relates to the real estate market most would say that the wisdom gleaned from the last few years is that the market in 2004-2006 was over inflated, even to the point of being a bubble. Some would say that it was a self-fulfilling prophecy, that most of the appreciation in the market was not sustainable because of so much exuberance. That what happened next with the market correction was inevitable.
Which came first: the exuberance over the appreciation or just the exuberance that threw out sound judgment and common sense? In my opinion what was learned is the bigger question of the present market.
The rise and fall of the last real estate cycle was similar to the one that occurred in the 1990’s. After a time of rapidly rising market, the economy was officially declared a recession. What we learned from that period is that it took 7-10 years from the peak of appreciation to get back up to the top levels of value again. So if the peak for the Northern Virginia market was 2005-2006, then it should be 2012-2016 to be back up to that level of value and perhaps appreciation over peak prices occurring.
It is my view, many market segments have returned to peak prices, particularly those priced below $1 m and inside the Capital Beltway. Some instances of appreciation over peak prices are occurring as well. If you are a Seller, don’t miss this opportunity.
I have been contemplating a quote by author and humorist Mark Twain:
We should be careful to get out of an experience only the wisdom that is in it -- and stop there -- lest we be like the cat that sits down on a hot stove-lid. She will never sit down on a hot stove-lid again, and that is well; but also she will never sit down on a cold one any more. (1835-1910).
Should one 
wait to sell because of the fact that there were so many people who lost their homes in short sales and foreclosures just a few years ago? What if you continued waiting so long that you actually missed a golden opportunity? That would be like the cat who would never sit down on a stove-lid again for fear that it may be hot.
My daughter is an equestrian and has fallen off her horse many times. But that doesn’t mean she doesn’t ride again, she dusts herself off and gets back on the horse. In my view it is time to dust ourselves off and get back into the market. Good houses priced right are selling in the present market. The important thing is to operate in the market one is currently in, not reminiscing about the past market and not over compensating in the other direction.
If you find yourself in the need of some guidance from a professional Realtor, please visit our website for more information at: www.HBC RealtyGroup.com. Karen Briscoe and Lizzy Conroy and their team of Associate Agents are active and experienced Realtors® with Keller Williams in the Northern Virginia, suburban Maryland and Washington, DC market place. We would be delighted to assist whether for home buying or selling. Please contact via the means most convenient for you: 703-734-0192 or Homes@HBCRealtyGroup.com.
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