Yes that’s right people! DC prices continue to rise and most of the country is still down! No I am not celebrating bad news but I am celebrating the fact that we live in a city that continues to be heavily isolated from other markets. This ultimately drives up our prices!
I have a few theories:
1) Supply and Demand…Econ 101 silly! As referenced in my first post, we only have 3.2 months supply of inventory at the current moment. This is probably not going to get better any day soon! Because of this drought we are seeing crazy bidding wars on homes every day. I honestly can’t remember the last time I submitted an offer on a home that didn’t have other offers already! It was even crazy over the holiday weekend. This lack of supply is creating a craze and prices are going through the roof.
2) Rates are at an all time low. This is bringing even more buyers into a dry market and creating more competition!
3) The city has always been insulated! Yes prices did fall in this city but we didn’t take the major hits that other major cities took. We are home to politicians, diplomats and yes….the dreaded 1%. The combination of demographics helps to stabilize prices in my opinion! Politicians are not going to let the posh city where they spend most of their time crumble!
4) Supply and Demand! Wait I already said that. In my opinion this is the biggest force keeping prices high and on the rise!
Hope you found this helpful! If you have any other thoughts please feel free to share!
So I was trying to think of some cheesy intro for my first blog post but I figured this breaking news would be far more interesting than me rambling on!
Yes rates hit an all time low today at 3.78%! Still don’t believe me check out these sources:
It’s pretty incredible folks. Several months ago the leading experts were telling us rates couldn’t get much better and look where we are today. A lot of data suggests that they don’t expect rates to rise much either….at least until 2014! Obviously there are a lot of factors that could change this such as the complete collapse of global markets but I doubt that’s going to happen any day soon!
Isn’t this a great picture of Greece! I hear they are offering some pretty good vacation packages right now! (too soon?)
All kidding and Armageddon forecasts aside, its pretty incredible that rates are this low! A lot of DC area buyers think so too and although they would normally be sitting on the sidelines many buyers are pushing themselves right into the front lines of action. Seriously people this is a great time to buy. BUT………………………..before you get your hopes up keep in mind the DC area inventory is at a 7 year low! This new flood of buyers is not helping much. During the month of April the DMV had 3.2 months of active inventory. To be neither a seller or buyers market we need to have 6 months of inventory. This means if we stopped listing houses today we would run out of inventory in 6 months. If you have more than 6 months you are facing a buyers market. In this case we only have 3.2 months and we don’t see it getting any better as we move into the summer months. This means properties are going fast and going well above list price. So prepare yourself as you move forward into today’s market.
That’s about all for today but in the coming weeks I hope to provide you with market updates and pointers to help you win that home of your dreams!
Thanks for reading!