You're right if you think the real estate market has changed
some in the last several months, but it's probably not in the way you think.
Real estate agents I've talked to over the last few weeks told me that we're
still in a seller's market, but that the facts of that market are, slightly
different than before.
Even though, they say, things in the marketplace may seem to
be mellowing, that's only because places to buy are becoming harder to find.
And, whereas six months ago you may have had to contend with 20 other people
trying to bid on the same home, it's more likely today that only you and one
or two others will be bidding.
Still, people - gay, straight or otherwise - are flocking to
D.C. in droves.
“The real estate community hasn't seen this great a demand
for housing in the city for more than fifteen or twenty years," says home
inspections expert Jim Vaughn In fact, according to a recent article in the
Washington Post, new residents - particularly white residents – are being
drawn to D.C. environs because of the improved economy, a decline in the
crime rate and the promise of a more efficient government ("More Whites Are
Making D.C. Home" August 30, 2000).
Add to that the fact that the number of galleries and
museums in D.C. easily rivals that of any other world city-. is second
runner up to New York City for professional and community theater; has a gay
population that rivals San Francisco's in many ways, and the climate is
generally reasonable and seasonable all year round (we usually have four
seasons - a must for many East Coasters).
Thanks to the recent explosion of technology firms in
general, and dot-coms in particular, the financial face of the area is
improving dramatically. This means good news for real estate because, unlike
the tremulous '80s when real estate prices started dropping, today's market
holds a great deal of promise. The only downside (if it is a downside) is
the reduced availability of actual properties.
This unavailability of real estate leads to a rise in demand
and that rise in demand can only be assuaged by an increase in prices. Real
estate agent Ed Downs suggests that as prices continue to rise in popular
areas and the shortage of supply increases, there will be a spill over
affect. People will have to compromise and perhaps move into areas that are
not on the top of their home wish list.
Broker Keith Blackburn echoes this sentiment and confirms
that dwindling inventory is resulting, for example, in people looking
further east of the Dupont Circle area. Populating neighborhoods such as
Logan Circle and Shaw. In the long run, everybody can win in these seenatios
as the tax base for those neighborhoods increases and the areas become
"gentrified." Final result? The homes purchased as a compromise often become
profit makers; the neighborhoods that are third, fourth, or not even on the
%Nish lists become the next Dupont Circle. In fact, Dupont Circle was once
an area that was last choice on buyer's lists - and look at Dupont today.
Sadly, the quest for bargains today can feel more like a
search for the Holy Grail. In fact, says Vaughn, the only real bargains are
the handy man specials. "And trust me," says Vaughn, "most of those are very
special and will require a lot of time and money!" To put it another way,
you risk putting a lot of money into your fixer upper only to wind up with a
very expensive, but still old, fixed-up home.
What all this means, of course, is that if you're in the
market today for that special home, you'll need to go into your search with
a flexible and open mind. Be prepared to discuss your needs with a
professional and expect to compromise a bit. And, practically speaking,
don't expect to find the bargain of a lifetime. That's not to say you won't
- there are a few out there. But the ones who will do the best in a seller's
market are the sellers, The prepared buyer, however, can maneuver him or
herself to be ready when and if the right time and place arrives.
|
Uncertain how to start looking
for a new home? Not sure if you're ready to buy? And what,
exactly, are "points"? Send your questions to realestate@metroweekly.net
for possible inclusion in the new weekly feature. MW |
- 30 -
Return to Index of Writings
by Michael Walker
