Washington Region a Seller's Market

The Washington, D.C., region “is a seller’s market,” reports Where We Live, The Washington Post’s real estate blog. “Housing prices are going up, days on the market are going down, and the scarcity of houses for sale indicates that the Washington region is a seller’s market,” wrote Kathy Orton, blogger for The Post. The assessment comes from a report by RealEstate Business Intelligence and the GMU Center for Regional Analysis on January housing data. “Yet, homeowners remain reluctant to put their homes up for sale. The number of new listings in January was the lowest for that month in 15 years,” Orton notes.

She proposed several theories to explain why so few homeowners are putting their homes on the market. “Many are underwater on their mortgages and can’t afford to sell. Others are worried about finding something to buy after they sell. And some are concerned about how the pending federal budget cuts might affect them and don’t want to undertake a large purchase because of that uncertainty.” The Washington region’s median sales price continues to increase compared to last year, she points out. “It climbed to $343,200, which was up 10.7 percent from January 2012, the fourth consecutive month it has shown a double-digit increase. However, it was down 4.4 percent from December, which is typical for this time of year.”  The median price for townhomes rose 13.3 percent over last year, condos climbed 13 percent, and single-family houses rose 3.8 percent.

Orton breaks down the numbers:

Sales of single-family houses had the biggest gain, up 8.8 percent. Sales of condos rose 5.4 percent, while townhouses were up 3.9 percent. This is the first time since March that single-family houses led the other two property types.
Active listings fell by more than 4,000 from January 2012 to 6,049. Townhouses are in the shortest supply, accounting for only 16.2 percent of listings. This is the lowest on record for this property type in the region dating back to 1997. There were 4,004 new listings in January, down 4.2 percent year-over-year.

She adds that the median of the number of days properties are on the market has fallen to 32 days, 25 days fewer than January 2012. An inventory shortage is driving this number down.
As always, please contact me, Mynor Herrera, for expert advice on everything real estate. I am licensed in D.C., Md., and Va., and I specialize in Bethesda and Chevy Chase, as well as the subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

You Can Make the Sale—Even in This Economy

If you’ve tried to sell your home recently in areas like Bethesda, Silver Spring, or other Washington suburbs, you’ve known what challenge is. But even in this buyer’s market, some sellers are getting multiple offers for their homes. The main reason is price, but there are other factors, as well, which I presented in a recent article on the Washington Times web site.

I talked about how inventory and demand tipped about 18 months ago in the sought-after neighborhoods like Bethesda and Arlington. Specifically, I stated that, “Fewer sellers were putting their homes on the market just as more buyers were deciding to take advantage of super low interest rates. The demand is out there for good homes, but potential sellers are still waiting to list their homes.”

The general consensus is that three factors influence how quickly a home will sell and whether more than one buyer will be interested: price, condition, and location.  But as I said in the article, “Ultimately, price dictates everything. Even the most unappealing place, especially if it is in a good location like the middle of downtown Bethesda, will sell if it is priced at $100,000.”

When I work with sellers, I use list-price recommendations based on recently sold homes, not comparable homes on the market, because a house that hasn’t sold yet could be overpriced.  My mantra to sellers is, “I am not here to tell you what you want to hear, but to be realistic about the market.”

In addition to price, other ways to attract multiple offers include a de-cluttered home, good lighting, home improvements, and determining how much a potential buyer needs financially. Then you need the right kind of marketing to reach those potential buyers. I list my properties later in the week, generally on Thursday, because this generates momentum for the weekend. “The goal is to generate a buzz about the property,” I stated. “I make sure every listing is online on more than 30 websites within 48 hours of going on the market, and do direct mail to local agents and neighbors.”

As I told the Times in closing, multiple offers happen where there are few homes on the market and more buyers—“but it’s difficult to predict whether that situation will continue.” So despite this economy, you can sell at the price you want by working with your realtor to set up the right strategies for your particular situation.

Contact me, Mynor Herrera, today for expert help buying or selling in the DC, MD, & VA areas! I also specialize in Bethesda and Chevy Chase, as well as the sub-divisions of Rosemary Hills, Rock Creek Forest, East Bethesda & Whitehall Condominium.