Is the tide really turning for DC real estate ? The Post is saying:
All of which suggests that the 18-month market correction that followed the four-year housing boom has just about run its course. From a national statistical perspective, we’re somewhere near slack tide—but no one’s looking for another frothy high tide anytime soon.
The combined factors of low interest rates, high inventory lead to a fairly robust buyers market, and as we go into spring, I’m curious to see what happens to the market. I’ve witnesses prices on several properties coming down up to $150K for some really desperate sellers. I’d hate to be the one holding that bag.
Interesting…until I saw the numbers, this isn’t what i thought was happening. It’s interesting to see both inventory and average price falling at the same time, but I’m under the assumption that this is largely a combination of the general housing market fizzle and a seasonal downturn. Houses just don’t really sell in the winter anyways. Still an interesting thing to keep your eye on though.
From the DC Examiner:
WASHINGTON – The housing market crash many feared would wreak havoc on the Washington area economy never materialized and the worst of the market ‘correction’ appears to be over, said real estate industry experts Thursday.
Are we out of the woods yet? There is such a glut of condos on the market, popping up all over Columbia Heights, Gallery Place, down Mass Ave, and around the new stadium. I’d like to buy a place, but I don’t want to pay $500k for something that could easily lose 10% in 2 years.
“New Villages,” as community planner Robert McIntyre dubs them in the latest issue of The Futurist magazine, are compact, pleasantly urban settlements located well away from city centers. They share some of the charms and amenities of cities, thanks to their density, but have the mostly rural surroundings that originally drew people out to the suburbs, as well as the friendly feel of a small town where you know your neighbors.
The concept of New Villages shares some similarities with the so-called “transit villages” you can already see around the country. Starting in the mid-’90s, when architects and local planners became more interested in more pedestrian-friendly, urban developments, transit villages started to spring up outside cities along revitalized rail lines, from Mission Valley near San Diego, to Ballston and Bethesda outside Washington, D.C.
They were very attractive to young city workers and empty-nest parents. Their defining characteristics: They were eminently walkable, densely constructed without feeling overcrowded, and offered a real community feeling with plenty of common spaces.
The difference between transit villages and New Villages is location: While transit villages mostly reinvented older suburbs that are close to cities, New Villages promise to reinvent the sprawl further out.
The demand for such developments is real, and it’s only going to get greater as consumer preferences rapidly shift away from the McMansions preferred by boomers. According to a study by the nonprofit Congress for New Urbanism, while less than 25 percent of middle-aged Americans are interested in living in dense areas, 53 percent of 24-34 year olds would choose to live in transit-rich, walkable neighborhoods, if they had the choice.
Demand for housing within walking distance of transit will more than double by 2025, according to another nonprofit, the Center for Transit-Oriented Development. Even now, properties within a 5- or 10-minute walk to a train stop are selling for 20 to 25 percent more than comparable properties further away – a price premium that’s likely to increase as traffic jams worsen.
And as the effects of the Internet continue to kick in, it won’t be so necessary to be in the big city – you’ll just want access to it every once in a while, for the occasional business meeting or nightclub outing. But as social animals we’ll still want to cluster together for face-to-face contact, local food and local culture.
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Is the bubble on the verge of bursting? Check out this picture of a bench near a condo complex at the Dunn Loring metro stop (orange line). Not sure why you’d want to live out there anyways…about a 1,000 condos, they all look the same, and it’s a traffic nightmare out there.
Thanks to Bubble Meter on blogspot.