With 2013 speeding to a close, there’s tons of news and information out on what to expect in 2014 regarding the national and Washington, D.C. real estate markets. Our take and forecast is similar to that of Jed Kolko, Chief Economist at Trulia.
“While 2013 was the year of the investor, 2014 is expected to usher in several pivotal shifts in the housing market, including the dominance of the repeat buyer,” said Kolko in a recent interview. “As prices rise, buying homes will become less attractive to investors as well as first-time home buyers, but repeat buyers will be able to offset the higher price of the home they buy with the higher price from the home they sell.”
We could not agree more with Trulia. “With home prices relatively low in 2013, we saw a huge uptick in the amount of first time homebuyers seeking us out for help as well as experienced and new real estate investors seeking out deals,” said Gerard DiRuggiero, Principal Broker at UrbanLand Company. “Our DCHFA $0 Seminars and Investor Workshop saw huge attendance throughout the year. We literally were forced to release seminars constantly throughout the year to service all the requests and interest.”
If You’re Buying in 2014, Choose a Strategic Broker & Agent
“The buying environment is far different for 2014. Available homes on the market have been selling quickly all year, with multiple offers common and multiple buyers competing for desirable properties,” continued DiRuggiero. “This type of demand and activity simply causes housing prices to rise.”
Those who already own homes can benefit from these types of market conditions. “The immediate knee jerk response to increased housing prices are to delay buying, stop searching for desirable properties, and to wait for prices to drop,” said Gerard. “For those that already own homes, the higher selling price you would receive from selling your own home can be a great equalizer and asset in these types of market conditions. The selling and re-buying process is also still a great away to alleviate tax burdens and capital gains taxes on your original home.”
You often can sell your home, invest the gains in purchasing your next home, and make the move quickly to your new home. Whether you move up to a larger proper with a corresponding move up in price/value, or move down to a smaller home at a lower price, the transition can be easy when you already own real estate.
“One thing Trulia states in their Housing Barometer study is that housing prices are overall only 71% of the way ‘back to normal’,” concluded DiRuggiero. “That is a nationwide number but what it really means for DC is that prices are going to continue to rise overall as recovery continues. The smart and strategic buyer can, with proper coaching and aggressive representation, can really take advantage of this change in pricing.”
UrbanLand Company is a full service real estate brokerage located in the U Street Corridor. The firm actively works with homebuyers, sellers, real estate investors and condominium developers all over DC, Maryland and Virginia. For more information, please email us at Info@UrbanLandCompany.com, or call 202.299.9223.