Washington DC Area Real Estate Market: Weak and Strong Areas
You want to know whether the market is strong if you are buying or selling real estate. Having such information lets you know how flexible you need to be in offers.
A lot of things affect market strength, but some more than others. Is employment strong in your area? Are there jobs available that pay well? Plentiful jobs that pay well help to strengthen the real estate market.
Is there a high inventory of newly built, but unsold, housing in your area? Has this inventory been increasing or decreasing? Sales tend to slow and prices decrease when inventory is very high. This often happens when prices have moved above what average families in an area can afford.
Where Home Inventories Are High
In certain area of Washington, D.C., and the greater DC Metro Area there are alot of unsold housing and those areas tend to be a lot better for buyers because they have the leverage.
Where Home Inventories Are Low
In the H St Corridor in DC, there is a very low housing inventory which increases prices in the area. Families are buying homes. Investors are scouting out the area and buying, too. This has created a situation that is very helpful to sellers.
What’s Going On In Your Market
How do you figure out what the market is like in your area? Read the local news paper. Are there price reductions or “We buy Houses Now” ads? Are there stories about lay-offs or about new employers coming to town? Call your local builder’s association, realtor’s association, Chamber of Commerce. Ask lots of questions about the number of unsold houses today as compared with the number a year ago. Ask the Chamber of Commerce about employers coming to town or leaving. Visit models in new communities and ask lots of questions there, too.
You will soon have your own opinion about what is going on in your part of the city in which you want to buy or sell. Your strategy needs to be adjusted to the strength of your position as a buyer or seller. Understanding the market you will be dealing in is a good place to start.