Wednesday, December 26, 2007

DC Not Considered a Declining Community

With the national housing market falling with little end in site, I have to say that I am a DC based Realtor. With licenses in DC, MD and VA and with most of my business coming no further out than one county from DC I consider myself fortunate. An article this week regarding the S&P index showed the actual decline of the DC market relatively low compared with the rest of the US. While the actual stats for DC were not mentioned, many believe that within the boundaries of DC itself, prices in early '08 will stabilize and will plateau into '09. Whats more is that even cities adjacent to DC should do rather well. Montgomery County has recently stabilized, Prince Georges has the National Harbor project as well as the strong possibility of the new DC United Stadium & MacFarlane's relocation. Arlington's condo market may not fare as well as single family homes but prices may be considered somewhat isolated among a sea of other markets nationwide that have collapsed.

In addition, MacFarlane purchased 2/3rd of JBG's real estate portfolio in recent months in addition to pledging to develop $10 billion worth of development, Douglas Jemal has 4 projects that should break ground in the first half of 2008. Now, taken the fact that while each of us individually may have our own two-cents, these two men have army's of employees who can conduct the research for them to help increase their wealth, far more than anyone I know can provide. If they are willing to bet their hundreds of millions of dollars on our real estate market, there is likely a very strong basis for their decision.

As an aside, I read a book called All Real Estate is Local by David Lereah. It couldn't paint a more accurate description of the local market, based solely on LOCAL factors on price and economy.

Do you disagree??

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