The Scoop on DC Living
October 2016
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BRETT WEST

TOP PRODUCER
DC, Maryland, Virginia

 


Condo Quandary? What's with the Market?

Real estate in DC this year has offered some serious head scratchers. On one hand, a house that is adequately prepared and priced well is selling in a matter of days, and usually above the asking price. On the other hand, condo inventory is lingering on the market far longer than houses, and there is more likely to be a price reduction on a condo versus a house.

What gives?

Of the 336 condos that sold in May of this year, the average price was $537,000. These homes were on the market for about 25 days before going under contract, and sold retaining nearly 100 percent of their original asking price to sell.

Conversely, the 319 condos that sold in September had an average sold price of $495,000, remained on the market for 33 days before going under contract, and sold an average of two percent below their original asking price.

In short, sellers of condo inventory can expect to sell at lower prices, to spend more time on market and to experience a greater price reduction than was seen in the spring.

The causes?

For one thing, our entire country is distracted by next month's presidential election - and we are far more distracted by it in the epicenter. Will the selection of one candidate over the other change the tone of DC's real estate market? Unlikely. But people are holding their breath when it comes to making big decisions to buy their next home. The same phenomenon occurs each year around the holiday season. Consumers are distracted.

Another major factor is the emergence of new condo construction - which is widespread.

The running joke around town is that DC's state bird is the crane. It often needs clarification that specifically, our state bird is the construction crane.



The large numbers of new-build construction - where the product is shiny and new, and often comes with incentives and perks - outcompetes what Joe and Sally Resale can offer. See the two articles about new construction in News & Trends below!

So what can be done?

Be aggressive on price and preparation. Make it spotless and free of hassles for buyers to recognize and appreciate. And price it below comparable market value to entice buyers. But also be prepared for the price reductions, because they're a reality in this market today.

Where the softening of the condo market may not sound like great news for sellers, it certainly is a benefit to buyers. And it takes the two - buyer and seller - to tango.

If information is power, my mission is to help create the most powerful consumers of real estate on the market!

- Brett
Featured #UrbanCastle Listings!

Life is wonderful in this sunny, spacious studio condo on the Waterfront! Click here for the virtual tour...



Beautiful garden-style condo in Dupont Circle!   Click here for the virtual tour...



News & Trends

NEW HOME SOURCE
First-time homebuyers and a newly built home make a good match
First-time homebuyers sometimes self-select themselves out of looking at newly built homes, believing that a new home is out of their reach financially.

WASHINGTON POST
Over-the-top amenities are a given in today's luxury condo buildings
Jet-set travelers who own homes in multiple places around the globe have high expectations.

CURBED DC
D.C. is the most mortgaged Metro area in the U.S.
Out of the 1,352,332 owner-occupied homes in Washington, D.C., 1,069,934 of those homes, or 79.118 percent, come with a mortgage, according to  LawnStarter' s latest report.
#UrbanCastles on the Market

As of October 13, 2016, the Washington Metro Area boasts more than 26,878 housing units active on the market, 1,402 of which are located in DC, itself. This excludes FSBOs (For Sale By Owner) and pocket listings. Here's a look at inventory by price range throughout the hot 20011 DC zip code, which includes 16th Street Heights, Brightwood, Crestwood, Petworth and the northern reaches of Columbia Heights, where there are currently 133 active listings:

 

$0 to $350k

(23 total units available)


 

$350k to $500k

(36 units available)


 

$500k to $800k

(62 units available)


 

$800k+

(15 units available)

 

Not finding exactly what you're looking for in the selection of inventory in DC? Feel free to check out plenty of inventory throughout the DC Metro Area, or drop me a line to schedule a time to talk with you about your goals.

www.BrettWest.com

202.744.0576 

BWest@McEnearney.com 

 



Featured Realtor on House Hunters: