Thursday, October 11, 2007

Buyers Get Ready! DC September Sales Down 42% in '07 vs '06

So whats going on with the market? As the market has taken a turn downward in recent years it has taken cities like DC and New York almost 8 months to feel the same pain many other areas of the country have been feeling in recent months. Well, its finally here. Recently the Greater Capital Association of Realtors released the reports of September and the numbers are not looking to good for sellers. According to the GCAAR DC condo sales volume is down 29 percent this September when compared to last September (286 units vs 204 units) and single family home sales are down 42 percent (304 units vs 176 units). GCAAR STATISTICS

What does this mean?

It means that DC may undergo a bit of a price reduction for those in need to sell over this winter, at least in my opinion until the third month in 2008. We have been noticing corrective measures and unusual incentives offered by buyers but its time to take everything to the next level for the interim. Possibly upwards to 5 percent for the time being, and NOT after the property is on the market for a month and you consider a reduction...the discount MUST be accounted for upon initial listing of the property, when traffic is expected to be highest during the first three weeks of exposure. Reductions coming after the initial listing are only going to cause future buyers to add additional discounts. Cutting the price from day one will cause significantly increased market interest.

Not to worry....

My expectation is that we will have a much more *stable* spring market, back to the normal ebb and flow of market trending rather than the "binge and purge" effect that is taking place now. Sales will remain consistent throughout next spring, summer, and fall and interest rates will remain at historic lows. Additionally, with the upcoming (and hopeful) turnover in the government, our local market will undergo a home selling and purchasing trend unseen anywhere else in the country adding to the stability of our market. In addition, local job growth forecasts upwards of 50,000 jobs over the next year, all of whom will need a place to live, stay and settle so while for the time being the market has hastened, the long term success of this city is inevitable.

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