Supply and Demand. Condo and row home inventory has been historically low, but demand has been historically high. The median price of a row home has rapidly increased since 2009 because there aren't enough homes on the market. The number of available condos has grown at a swift pace since 2012, which explains why we've seen a moderately healthy rate of growth for the overall condo/coop market.
What's this mean?
The DC real estate market has proven to be a steady long-term investment, particularly considering the relatively minimal impact the housing crisis had on DC in comparison to the rest of the country. The region is still one of the nation's most robust economies, largely fueled by the presence of the federal government.
Overall, the city has seen impressive population gains for more than a decade. In fact, July 2015 marked the first time the District has had more than 672,000 residents since 1977, when there were 681,800 people living in the nation’s capital. The District is now adding 1,000+ residents a month, which gives it the third fastest growth rate behind behind Colorado.
If you're thinking about selling your home, now is the time to discuss your options with a competent Realtor. The District is a very strong seller's market NOW...but for how long? In this market, how quickly your home sells is dependent on how well you do the following:
- Marketing - Your agent should use numerous marketing channels to expose your property to potential buyers...and be sure social media is a core component. Buyers like to walk into a property and envision as their own, so use a staging designer and put the personal items in storage.
- Access - Buyers will not purchase a home that they cannot see. Ideally, your home should be vacant before going on the market, but if you must live there, make it easy for buyers to drop by.
- Price - If your home is priced too high, it will not sell.
If you're thinking about buying a home, DC has proven to be a popular place that has experienced continuous growth. There are potential tax benefits to consider, such as the DC Tax Abatement Program, the Homestead Deduction, and the Mortgage Interest Tax Deduction. There are also flexible lending options for zero and low-down payment financing for borrowers. A recent study found it to be 32% cheaper to buy vs. rent after 5 years, so if you plan to be in the area for a while, buying could be your best option.
DC Neighborhoods
Last year we took a look at real estate sales in a few of the city's popular neighborhoods (click)
