DC REAL ESTATE MONTHLY MUSE
A concise synopsis of the Washington DC real estate market
BUZZ AROUND THE OFFICE
It’s a very good time to own a home in the nation’s capital! Homeowners are enjoying their fourth straight year of rising values. Sales continue at a brisk pace with demand outweighing supply. The government sequester never seemed to put much of a dent in demand. Potential buyers eager to take advantage of low interest rates and an appreciating real estate market are facing stiff competition.
Most listings are seeing multiple offers. More often than not, the winning offer is above the seller’s asking price with very few, if any, contingencies. It’s commonplace in DC for purchasers to accept the property “as-is,” and many buyers are choosing to waive any financing or appraisal contingencies to sway the seller in their direction. Some neighborhoods are seeing double-digit appreciation, as buyers who have been priced out of their first-choice neighborhoods are considering locations that weren’t on their radar just a few years ago. Both large and small real estate investors and developers are back in the mix as well, pushing higher values.
New construction has always created jobs and helped the U.S. economy recover after a recession. This financial rebound is no different. Local developers are hard at work as they claim their stake in the housing recovery. Single-family homes that need work and are priced accordingly are almost guaranteed to see a few cash offers. Condo conversions have become increasingly popular as the city has relaxed parking requirements for multi-family dwellings near public transportation. Meanwhile, cranes have sprouted across the DC skyline as more than 30 large-scale multi-million dollar projects are currently underway in every corner of the city.
We don't anticipate the pace of the housing recovery to slow down anytime soon. That story may change if there is a substantial uptick in interest rates. As of right now, housing inventory remains much lower than historic averages and there are plenty of buyers trying to enter the market. It’s more important than ever to work with a knowledgeable realtor. If you're well qualified and are realistic about what you can afford, we can help find a home for you!
In a city jammed with pop-up restaurants and Twitter-trending food trucks, sometimes the classics are classics for a reason.The Old Ebbitt Grill has been a staple in Washington, DC since 1856 (that’s 158 years for those counting!). Owned by the Clyde’s Restaurant Group, this iconic landmark on the corner of the 15th and G Streets NW serves up classic American fare at reasonable prices. The Old Ebbitt Grill welcomes patrons nearly 24 hours a day. The four large bars and massive dining room provide a myriad of dining and drinking options. Some of the best crabcakes, burgers, sandwiches, and salads in the city can be had at the Old Ebbitt. The raw bar is a must-try for seafood lovers, with oysters, clams, crab claws, shrimp, and lobster. The Ebbitt has been visited by nearly every President since it opened, as well as numerous other celebrities. Be sure to add it to your list of places to check out in Washington, DC.
WASHINGTON, DC REAL ESTATE TREND INDICATORS
Median sales price in January 2014 was $470,000, which is up 11.64 percent from last January's median sales price. The average sales price to original list price was 97.1 percent in January 2014. That is up from a sales price to original list price ratio of 96.4 percent in January 2013. Pending sales were down 3.78 percent from the same time last year. The time properties sat on the market fell 12 days, with the current average at 53 days on market. There were 1,018 active listings in Washington DC in January 2014 which is up 5.38 percent from the number of listings on the market at this time a year ago. A total of 462 properties sold in January 2014 which is up 6.94 percent over last year.
MORTGAGE RATE NEWS
Mortgage interest rates are close to as low as they’ve been throughout the last six years. After an overall one-percent rise in 2013, rates have dipped slightly early in 2014. The average rate on a 30-year fixed mortgage was 4.30 percent in February 2014. There is an expected increase slowly in the next year, so now may be the perfect time to buy a home to avoid the expected higher interest rates. If you're one of the lucky buyers who can lock up a reasonably priced home, your inflation adjusted interest rate is approaching zero! Continued strong demand in the DC area and a low supply of listings will likely continue to push up real estate prices in the foreseeable future.
Trinidad is a Northeast DC neighborhood that could be the next area in DC to take off. Adjacent to the newly popularized H Street Corridor, Trinidad offers bargains for those in the market for a house who can’t afford other parts of the District. The neighborhood got its name from…
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