Hello everyone! Welcome back to the Love Living DC Show! My name is Jennell Alexander, and I serve the amazing people of the DC metro area. Today, we’re talking all about the current state of the real estate market in Washington, DC.
The Problem With Real-Estate Headlines
By now, I’m sure you are familiar with the trend of rising home prices throughout the country. Many popular cities, including New York, DC, Charlotte and Atlanta, have seen almost a decade of home price appreciation since the last recession. But did you know that the market where you live may be much different than that you see on the national headlines?
So many would-be buyers, sellers, or investors sit on the fence, letting great opportunities pass them by, all because they’re paralyzed by the fear that it’s the “wrong” time to get involved in real estate! Inventory, demand, and interest rates (among other things) all play an important part, and I’m here to help you put your best foot forward!
What Are the Different Types of Real Estate Markets?
Forget about what you’ve seen on HGTV… “Real Estate” is local, and in order to truly understand the state of the current market and act accordingly, you must get in touch with a trusted professional. So today, I want to offer you insight on “supply and demand” by sharing a few of the most common “types” of real estate markets: A buyer’s market, a seller’s market, and a dual market.
The first type is a Buyer’s Market: When you hear this term, it means that supply currently outweighs demand, the market is saturated with listings, and a typical seller is at a slight disadvantage because the competition of similar properties is higher than average. As a rule of thumb, this would be a great opportunity for a buyer to enter the market because it often means that you can be confident that you will not overspend on your purchase.
The second type is a Seller’s Market: This means that the housing inventory is particularly low and that as a seller, it may be a great opportunity to list your property because the competition of similarly priced homes is likely to below, as well. Sellers who have made necessary improvements and have priced their home correctly may enjoy fewer days on market, more motivated buyers, multiple offers, and an “above ask” sale price.
On the other hand, as a buyer entering this type of market, it may mean that you may experience a few hurdles before getting that offer accepted… to avoid challenges here, be sure to:
- Get pre-approved for purchase!
- Be prepared to act swiftly once you’ve decided on a property, and finally
- Present a clean offer with as few contingencies as possible! Be prepared to come out of pocket for any and all closing costs!
Finally, we have what is called a Dual Market. This refers to a market that favors both buyers and sellers, depending on the price point. For example, right now in DC, for homes priced at $400,000, the pool of potential buyers is much larger than at a higher price point; therefore, competition may be stiff. As a buyer, it may be more difficult to get your offer accepted, and as a seller, if your home is updated and priced correctly, you can expect to receive a full-price offer.
Conversely, at a higher price point, like $1,00,000+, the pool of potential buyers is much smaller, therefore, as inventory builds, buyers may have quite a selection of properties to choose from, devaluing the demand for your listing, in particular.
Both scenarios can exist at the same time.
If you’re relying on real estate portal sites or “HGTV” to determine the state of our local market, you may miss out on an opportunity to “win” in our current market.
Right now, Washington is in a Sellers Market, with a slight lean toward neutral at the higher price points. If you’re living in a starter home or condo, this is really the ideal situation. You may have many buyers who want to purchase your property. At the same time, you have less competition for the move-up or luxury home that you want to move into. Your Realtor can create a robust marketing plan for your current home so that you can sell for more money, in less time. They can also help you find the dream home that you’ve always wanted and help you manage both transactions smoothly. Interest rates are still near historic lows, so your money will go farther than you make think
At this point, you may be convinced that you may need some guidance around the home improvement projects. But you may also be thinking that you have no idea where to start. If you’re thinking about making a move, I can help you through the process. Just send me a message or text me at 202-717-2276. No pressure, no sales tactics, just the help and guidance that you need!
Finally, if you’re a resident of the DC area I want to let you know that I have a free Facebook Group for members of our community! It’s called, Love Living DC. It’s a great place to join a strong tribe of Washingtonians who get weekly information about the best events and activities happening in and around town. If you’re interested in joining, click this link.
Thank you so much for joining me today, I’ll see you in the next episode!!!