Something unusual is happening in Washing D.C. – the capital of the nation and its got nothing to do with the heightened political bickering or occasional threats of shutdowns by the government. Instead of going by the natural rules that guide supply and demand, the value of homes is staying reasonably flat. It is worth noting that the DC region has steadily remained one of the most long-standing housing markets in the country.
Below we explore the six reasons why everyone is talking about DC housing.
1. A Seller’s Market Except Buyers Slowly Gaining Power
The spring market that essentially begins in February is always robust. For quite a good number of years now, the housing market in D.C. has benefited sellers, due to the demand for housing and the scarcity of inventory. However, the tide is about to change with buyers expected to push back. Buyers in the D.C. area are put off by aggressively priced homes. As a result, the properties priced exorbitantly tend to waste away on the market.
Even though homebuyers do not have much leverage when it comes to negotiating property prices prior to the signing of contracts in the tight housing market, agents are reporting that buyers are winning more negotiations the needed repairs after the completion of the home inspection process.
The desire of living in the city essentially means that demand for housing in the region is still high (especially for new and newly renovated condos and homes). Buyers are willing to pay a premium for the newly constructed homes.
2. A Minimal Number Of Homes Put Up For Sale
Even though there were plenty of homes placed on the market earlier in winter and fall, the listings were quickly purchased. A strong indication of insufficient inventory is how fast properties in the region sell.
New construction is expected to provide the much-needed relief to the inventory woes over the next couple of years, especially in Dupont Circle and the surrounding areas of Truxton Circle (outskirts of Shaw). There is a resurgence of urban development witnessed in the past decade as a result of high housing demand and population growth. The trend is expected to carry on in the few coming years.
3. Variety of neighbourhoods
The region boasts of having everything from the urban apartment/condo to the suburban townhouses and rural farmland to the single-family homes. When considering buying property in D.C., you can choose to live in a community that perfectly suits your lifestyle. Brandon Palmer from DaroApartments.com says that it’s best to look for apartments with the famous charm and beauty of DC’s historic estates.
4. Popular Neighborhoods
The younger population of affluent buyers prefers to reside in Forest Hills, Cleveland Park or live downtown, especially in the walkable neighbourhoods. The buyers shopping for affordable homes have witnessed prices rise over the years in the neighbourhoods once viewed as less desirable compared to the hot spots (Shaw and Logan Circle).
As the current spring market approach summer, there will be more listings for additional properties placed for sale to match the huge buyer demand in the nation’s capital.
5. Diversity of people
The Washington, D.C. area’s population is comprised of a wide variety of residents coming from different ethnic backgrounds, religions, economic levels, and religions. The population is generally highly educated, which has helped to push the demand for housing in the region.
6. Political Influence
The popular daily proceedings on Capitol Hill, political demonstrations, and scandals are some of the critical components that make the region an interesting place. Since the DC area is the nation’s capital, the influence and impact of the government are widely felt. The local job market is robust, thanks to government contracts and employment opportunities. The ever-changing political climate and the global focus on the city is one of the reasons why many people talk about the DC’s housing.
What to watch when shopping for property in the Washington D.C. market:
- Buyers are quickly gaining more leverage than the sellers
- Prices seem to be moderating and property prices are not soaring as quickly as they did in the past couple of years
- Homes are being sold quickly and buyers are more likely to find multiple offers than they did last year
From above, it is easy to see why more and more people are focusing their attention on Washington D.C.’s housing market. When shopping around for property in the DC area, it is advisable that you do so as the spring market approaches as there are always more properties listed in this period to cater to the huge buyer demand.