It may be cold outside right now, but all signs seem to point that the downtown D.C. real estate market is starting to warm up again for sellers. For the past year, real estate market’s adjusted home prices and low interest rates have had smart, savvy buyers feasting on deals throughout the city. This has made many homeowners wary about putting their properties on the market, for fear of low ball offers and unrealistic expectations from buyers about price concessions.
As an urban real estate brokerage that is out on the streets daily, we’ve been seeing indicators that this situation is ending. If you’re a property owner in D.C. , be it a condo, row home or single family home, now may be the time to test the market again:
There is less new condo inventory on the market: Small private developers are active again, starting to list new, smaller buildings that they acquired during the economic recession. Building shells and depressed properties were purchased by smart investors, and renovations and new construction is now nearing completion for a small amount of luxury, price-adjusted condos for sale. This is far different from past years, where huge new projects created excess supply on the market. There is buyer competition again for these small amounts of new condo units. The majority of these properties are in smaller NE and NW neighborhoods, with very little available in super hot locations like DuPont Circle, Adams Morgan, Capitol Hill, etc.
Buyers wishing to take advantage of low interest rates are looking in the resale market: The super low interest rates available now (under 4% in some cases) are causing buyers who are ready to purchase to explore the resale markets throughout the city. Most of our inquiries and phone calls from buyers needing help this year have been primarily in the resale market, where buyers can now find deals in the actual neighborhoods they’ve always wanted to live in. A lot of our buyers are simply not excited about the new condo and new home choices available.
If you’re not happy with your current home, now is the time to move out and move up: For the last few months, we’ve had a lot of inquiries from D.C. homeowners who purchased a home during the real estate bubble. Happy homeownership is tied to so many different emotions, and we’ve had a lot of action from owners who have gotten over the initial shock of seeing a drop in property value or equity and are now looking to get a fresh start with a clean slate. For the first time in five years, sellers can put their property on the market and write contingent offers on a new property that are tied to the sale of their current homes.
UrbanLand Company is a downtown real estate brokerage headquartered in the U Street corridor. They offer fast and easy, free market analyses and consultation to homeowners wishing to potentially sell their D.C. home or condominium. If you would like to explore listing your current property for sale or are interested in finding a property to purchase, please contact firstname.lastname@example.org.