Agreed. Supply is very short of demand here in the DC metro are. Very short. I just met with my realtor to discuss strategies for selling my 1,500 square-foot colonial in North Arlington. The Realtor said, after touring the tiny home in a GREAT neighborhood, "My strategy is to tape a contract to the front door -- ask for 729K -- and see if it takes someone more than one day to offer 750 or more -- no contingency, no appraisal, and no inspection!"
I sure hope he is correct.
On the flip side -- I bought a new home further out in America's fastest growing County -- Loudoun County Virginia. There is a waiting list to buy new construction. I bought my new home on Christmas even for 649K. It is currently selling for 700K, and the realtor said that by the time they finish building it in Septeber, it will be selling for $740-760.
The truth be known though, I am selling my current home this spring because I do fear a bubble, and I would rather cash out now -- as the value can drop in my new home, because I will be there until I die -- so I can ride out any adjustment.
Third fastest IIRC, but who's counting. :-)
I hope you enjoy the county... I know we did. Do what you can to keep the Democrats out of county political power (and kick the current chairman off the board) and you'll love living there.
If you can afford to keep the home regardless of where the market goes (got a fixed-rate mortgage?) you'll be just fine.
Our house there sold the day it was listed and has probably gone up another 100k since we sold it a year ago. But I have no regrets (well... the 100k would be nice....) and we made the decision to move South. We've got four kids and just couldn't afford to continue living there (I don't think I could qualify for my old home if we moved back now without sinking all of our savings in to it).
But now I live five minutes from the office, have no traffic... and you couldn't buy a house like mine for less than seven figures anywhere close to the old job (certainly not five minutes... that would be McLean and would cost 1.5MM easy.
Dear Iron Eagle,
There are still a few pockets of affordability in the DC area, mostly in Prince George's County, MD.
However, even many of the neighborhoods there are getting pricey.
I sold a house near Bowie in 2000 for a bit over $200,000. The fellow who bought it from me sold it this past year for over $350,000.
The neighborhoods where my wife and I grew up have seen about 100% appreciation in the last five years.
As for Arlington, well, heck, it's nearly walking distance to downtown, as well as in the middle of its own business district.
Folks are going to pay for location. Always have, always will. You take a couple of government middle managers, say a GS-13 and a GS-14 (or their equivalent in the so-called private sector), married, and their household income may near, or even top $200,000. With those kinds of bucks walking in the door every month, it isn't a stretch at all to get to a six hundred thousand dollar mortgage.
I asked a buddy of mine who is very knowledgeable about all things financial, and he says one thing that is beginning to drive the housing market is that a lot of parents of baby boomers are now dying, and many are leaving substantial assets to their boomer kids. Not enough to go live on the Riviera, but enough to put 20% down on a $700K or $800K house.
I'm a boomer, myself. My mother died in late 2003. My father's health isn't great, and I help him with his estate planning. I know that when he dies (he's nearly 80), his four kids will come into a modest fortune.
If I weren't already in the house in which I want to live, it would certainly give me enough, when combined with what equity I already have, to put down one very hefty downpayment on a new house.
As well, folks are still hesitant about the stock market, and buying a bigger house is an alternative means of investing for a lot of folks.
I think that there are a few regions that may be ready to burst. I don't think the Washington, DC metro area is one of them.
Yet.
sitetest