According to BuilderOnline.com, Washington D.C. made the top ten healthiest housing markets for 2009. Washington D.C. actually ranked number 6.
Here is what was written about the Washington DC housing market:
Washington D.C. showed signs last summer that it might be emerging from the downturn, then it turned south again. Even so, the area produces a ton of jobs—an estimated 35,000 in the last year—that fuel a vibrant housing market, the 11th largest in the country. Many of the jobs stem from contracts with the federal government. Washington D.C. remains a relatively unaffordable place to live, with a median home price of $332,700 in the third quarter of last year.
One prime reason the of the ranking is that the population in Washington DC area has grown around one percent each year for the past five years.
The home building patterns have changed as well. Many families moving to the area are demanding to be inside or immediately outside the capital beltway because the traffic is one in the nation’s worst. I live inside the beltway and I can get any where I need to go — from Washington D.C. and the Virginia and the Maryland suburbs in 20 to 30 minutes. And if I travel during off-rush house times, it may be 10 to 15 minutes.
We are even working with new home building clients that are moving down to inside the beltway from Gaithersburg, Md., Culpepper, Va., and Frederick, Md.
The BuilderOnline section is courtesy of: Hanley Wood Market Intelligence.
The Wall Street Journal reported in yesterdays paper that home sale sin the U.S. had their biggest monthly increase, a 6.5% rise, in almost seven years.
Economists still warned that the spring buying season will probably be slow due to growing economic problems, like all of the layoffs reported recently.
However, the Washington D.C. area seems to be holding up fairly well. Especially in areas that we focus on, around and inside the Beltway.
One driver I think is the relatively low unemployment rate in the DC area – 4%.
We have seen a lot of activity the last few months. Rates are low and construction costs have remained fairly stable. Rates seem to be around 5%. I’ve had a few of my rates actually drop below 5% (one of my rates, an arm is at 3.875%).
In my view, real estate is a long term investment. So when you think about it, this is an opportune time to be buying, if you are thinking long term.
The supply of homes for sale is also a driver of housing prices. Washington D.C. months of supply has dropped to 5.8 months of supply. Compared that with 29.5 months of supply in Miami and this market sure feels pretty good.
But real estate values really due vary and fluctuate differently within each neighborhood. We are finding Bethesda and Chevy Chase are doing much better than Gaithersburg and Germantown, for instance.
If you are thinking of selling your home and it’s inside the beltway give me a call or send me an email at rob@ParamountConstruction.net
