Stephen Fuller, an economist and faculty chair at George Mason University, comments regularly on the DC Metro economy. His latest report, "The Future of the Washington Metropolitan Area Economy", is at the same time upbeat and cautionary. The cautionary part is that we have a lot of work to do to "upgrade" infrastructure, but having done that, we have tremendous growth expectation...in the next 20 years, population to increase by 1.67 million and 1.58 million net new jobs.
This will require significant new housing possibilities...new construction and rehab. Georgetown is not likely to be the site of much of this, but the Georgetown real estate market will benefit from the added demand for housing wherever that demand is initially located.
See the full report at http://www.cra-gmu.org/forecasts.htm
4/29/2010
4/26/2010
Georgetown Stats - week of April 19 -25
According to the MRIS (Multiple regional information Service), the following real estate transactions have taken place in Georgetown real estate during the week of 4/19 - 4/25:
7 new listings: 5 Single Family ($759,000- $2,095,000) and 2 condo/co-op (C/C) ($525,000 - $5,995,000)
7 properties came under contract: 3 SF ($779,000 - $1,699,000) and 4 C/C ($450,000 -$5,500,000)
1 property went to closing during this time frame: 1 SF ($2,295,000)
7 new listings: 5 Single Family ($759,000- $2,095,000) and 2 condo/co-op (C/C) ($525,000 - $5,995,000)
7 properties came under contract: 3 SF ($779,000 - $1,699,000) and 4 C/C ($450,000 -$5,500,000)
1 property went to closing during this time frame: 1 SF ($2,295,000)
4/21/2010
Many good housing signs
Georgetown real estate is for the most part not an "entry-level" neighborhood. Thus we are dependent in many instances on the lower priced properties to sell, so those owners can move up to higher priced properties. The good news right now is that first-time homebuyers, and investors have become much more active, and as a result the inventory of unsold properties has diminished. This is driven by an improving job market, lower house prices, continuing low interest rates and the tax credit for first-time buyers.
As that market improves, our Georgetown market will experience a surge. It may be a slow, deliberate "surge", but it will improve our outlook.
As that market improves, our Georgetown market will experience a surge. It may be a slow, deliberate "surge", but it will improve our outlook.
4/19/2010
Is NOW the time to buy?
That seems to be the eternal question, and it isn’t an easy one to answer given the complexity of reasons why any given person thinks about buying or not buying. But whether or not it is the best time, it certainly is a good time to buy. Interest rates are still very, very favorable. For many buyers the $8000 tax credit is still available (until April 30th unless it gets extended again). Prices have come down, and in some areas have come down a lot. And, there are short sales and foreclosures which are potentially great bargains. It’s hard to imagine a better scenario in which to buy a property.
Of course all of this assumes wanting to settle down in one place for a while; having the resources to buy without putting oneself in financial straits; being ready to take on the upkeep of a property; etc.
No one knows, of course, whether we have reached the “bottom” in the economy or the real estate market. The reality is that we won’t know we’ve reached that point until we are on the way up. Even if one thinks we haven’t bottomed out yet, there are many good reasons to buy now. Waiting for the possibility of lower prices is probably not going to gain anything. And if interest rates were to rise over the coming months, the advantage of a further drop in house prices would likely be nullified by the higher cost of mortgage money.
Finally, one's life circumstances are a very important piece of the puzzle. A house is not purely an investment. Historically, owning a house has been a wise financial investment, but it is also an investment in one’s quality of life. Too often we ignore that side of it. Depending on the reasons for buying, it is worth weighing the quality of life value against the financial investment value. Some buyers are willing to risk some of the financial value in exchange for a desired quality of life. Otherwise, I believe it is as good a time to buy now as it has ever been in my (27 years) experience.
There's a very good article in U.S. News & World Report, titled "The future of home-price appreciation." Buy Now?
Of course all of this assumes wanting to settle down in one place for a while; having the resources to buy without putting oneself in financial straits; being ready to take on the upkeep of a property; etc.
No one knows, of course, whether we have reached the “bottom” in the economy or the real estate market. The reality is that we won’t know we’ve reached that point until we are on the way up. Even if one thinks we haven’t bottomed out yet, there are many good reasons to buy now. Waiting for the possibility of lower prices is probably not going to gain anything. And if interest rates were to rise over the coming months, the advantage of a further drop in house prices would likely be nullified by the higher cost of mortgage money.
Finally, one's life circumstances are a very important piece of the puzzle. A house is not purely an investment. Historically, owning a house has been a wise financial investment, but it is also an investment in one’s quality of life. Too often we ignore that side of it. Depending on the reasons for buying, it is worth weighing the quality of life value against the financial investment value. Some buyers are willing to risk some of the financial value in exchange for a desired quality of life. Otherwise, I believe it is as good a time to buy now as it has ever been in my (27 years) experience.
There's a very good article in U.S. News & World Report, titled "The future of home-price appreciation." Buy Now?
4/16/2010
77 percent of Americans expect stable or rising home prices
According to a recent Gallup survey, seventy-seven percent of Americans expect home prices to rise or stay the same in the next 12 months. 34 percent of Americans expect the average price of houses around them to increase in the next year. Gallup reports that 43 percent of Americans expect housing prices to stay the same in the coming year. Confidence that prices will rise is strongest on the East and West coasts.
That confidence combined with low interest rates on government loans will mean more home sales in the short-term, Gallup said. Those sales, in turn, will stimulate the real estate market and larger economy.
The survey also noted that 72% of Americans think it’s a good time to buy a new home. But it also notes that the issue of job creation is an obstacle to feeling financially secure enough to buy.
To see the poll, go to Gallup
That confidence combined with low interest rates on government loans will mean more home sales in the short-term, Gallup said. Those sales, in turn, will stimulate the real estate market and larger economy.
The survey also noted that 72% of Americans think it’s a good time to buy a new home. But it also notes that the issue of job creation is an obstacle to feeling financially secure enough to buy.
To see the poll, go to Gallup
Single-women homebuyers: a growing segment
Results of the 2009 National Association of Realtors (NAR) Profile of Home Buyers and Sellers show that a significant share of homebuyers are single women. Indeed, the percentage of single-women buyers has increased from 14 percent in 1995 to 21 percent in 2009. These home purchasers account for the second largest share of adult households who purchase homes.
Single females make up one-quarter of the first-time buyer population and 17 percent of the repeat buyer population. Among single-female buyers, 58 percent were first-time homebuyers in 2009, compared to 47 percent of all homebuyers.
The median household income for single-women homebuyers was lower than that of all other homebuyer household types. Single females reported a median household income of $47,900 in 2008 compared to $73,100 among all home-buying households. This difference in household income should not be completely surprising as 68 percent of home-buying households are couples-and so perhaps likely to have two income earners.
The difference in median income for single women households compared to those for single men is less striking-single men typically made $53,700 in 2008. Additionally, single women households are less likely to have children living at home than couples.
While the majority of single female buyers purchase a single-family home, single female households are more likely than other household types to purchase an apartment/condominium or a townhouse/rowhouse. One in four single female buyers purchase a house in an urban area/central city, which is a higher percentage compared to all other household compositions except single males. Still, the majority of single female homebuyers purchase a home in the suburbs, similar to all buyers. Single female buyers are more likely to purchase an existing home than are other buyers.
Source: 2009 NAR Profile of Home Buyers and Sellers, Jessica Lautz
Single females make up one-quarter of the first-time buyer population and 17 percent of the repeat buyer population. Among single-female buyers, 58 percent were first-time homebuyers in 2009, compared to 47 percent of all homebuyers.
The median household income for single-women homebuyers was lower than that of all other homebuyer household types. Single females reported a median household income of $47,900 in 2008 compared to $73,100 among all home-buying households. This difference in household income should not be completely surprising as 68 percent of home-buying households are couples-and so perhaps likely to have two income earners.
The difference in median income for single women households compared to those for single men is less striking-single men typically made $53,700 in 2008. Additionally, single women households are less likely to have children living at home than couples.
While the majority of single female buyers purchase a single-family home, single female households are more likely than other household types to purchase an apartment/condominium or a townhouse/rowhouse. One in four single female buyers purchase a house in an urban area/central city, which is a higher percentage compared to all other household compositions except single males. Still, the majority of single female homebuyers purchase a home in the suburbs, similar to all buyers. Single female buyers are more likely to purchase an existing home than are other buyers.
Source: 2009 NAR Profile of Home Buyers and Sellers, Jessica Lautz
4/14/2010
A weekend of Community
One of the things which makes Georgetown real estate a preference for many people is the sense of community. No better example of our community life are events happening the weekend of April 23rd and 24th. Right across from our office is Book Hill Park which is what gives our Book Hill neighborhood its name. And we are the center of the annual French Market with discounts up to 70% at 30+ Georgetown merchants, live entertainment, French food, and children's activities.
That same weekend on Saturday, we have The Georgetown House Tour. One can visit numerous Georgetown homes and gardens, and enjoy the Parish Tea at St. John's Church, with homemade tea sandwiches and sweets.
Details are available at http://www.georgetownhousetour.com/ and http://georgetowndc.com/event/book-hill-french-market1
That same weekend on Saturday, we have The Georgetown House Tour. One can visit numerous Georgetown homes and gardens, and enjoy the Parish Tea at St. John's Church, with homemade tea sandwiches and sweets.
Details are available at http://www.georgetownhousetour.com/ and http://georgetowndc.com/event/book-hill-french-market1
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