Hi Michael,

As a potential buyer in the same market as you (disclaimer: Bruce Lemieux is our buyer's agent), I would also mention that a lot of folks have been saying that Walter Reed's moving to Naval Medical in 2010, so the Bethesda market will not be heading down for some time since a lot of people will be settling down close to that area. Unfortunately, a mil does not buy you a whole lot in the Bethesda market (not that it buys a whole lot more in Potomac either).

Tue Jun 3 2008, 07:30

Hi Michael,

As a potential buyer in the same market as you (disclaimer: Bruce Lemieux is our buyer's agent), I would also mention that a lot of folks have been saying that Walter Reed's moving to Naval Medical in 2010, so the Bethesda market will not be heading down for some time since a lot of people will be settling down close to that area. Unfortunately, a mil does not buy you a whole lot in the Bethesda market (not that it buys a whole lot more in Potomac either).

Tue Jun 3 2008, 07:29

Hi Michael,

Current inventory is very high for homes in this price range and area, so you have a lot of selection. In general, demand for homes in Bethesda has been greater than for Potomac. Since you have time, I recommend that you get educated on the different areas and neighborhoods. Where do you want to be? What kind of home? There's a lot of older homes in the area - are you willing to renovate?

I've had buyers that would love a Bethesda location, but couldn't live with a older, smaller home typical in Bethesda in this range. For them, Potomac can be a good alternative. What's important to you? Narrow your search to meet your specific needs.

When will the market bottom out? If you are relatively certain that you'll be in your next home 5-7+ years, then I think this is a good time to buy. There's a very good selection and you can negotiate a good deal. I believe that you would be OK financially even if we see additional price depreciation in the next 1-2 years. If there's a good chance that you will have to sell in 3 years or less, then I would stay on the sidelines.

Good luck.

Sun May 25 2008, 17:11

Interest rates could not be better and home prices are much lower.Sellers are anxious and more than willing to negotiate with buyers. Focusing on the home you want now that stops you in your tracks is what counts. Time not being a factor for you, I think the time is right to start looking seriously for what appeals to you.
Negotiating the price you want comes next, and if the Sellers are not willing, then move on to the next million dollar home in Potomac/Bethesda that appeals to you !

Mon May 19 2008, 08:37

Michael, hello again! As time passes by the cost of energy is increasing and maintaining a larger homes would be more costly! However, as Mansur said, RE market is what you make of it!

The best time to purchase a Million Dollar property would be in Buying Market! So, lower prices + lower rate = right time to buy or Lower demand + Higher supplies = right time to buy.

No one can forecast the future, however we find out about real estate bottom out, when we are already in the uptrend!

Hope this helps you with your decision.

Cheers,

Sun May 18 2008, 18:14

To answer your specific question, my guess on the market bottoming out in the Potomac/Bethesda area is late 2009 or early 2010. But, of course, I could be wrong. And even if I'm right, the decline from now to the bottom is likely to be fairly mild. That is, we're already reasonably close to the low point.

So, I wouldn't try to time the market precisely. (On a million dollar home, if the market goes down 6% more in the next year, that's $60,000. That's 1/2% a month, or $5,000 a month. So what if you buy 3 months prior to the absolute bottom? You've "lost" a grand total of $15,000 on a million dollar house. I'd suggest focusing instead on finding the right house for you. And then negotiating strongly enough that if there's a bit more of a price decline, you'll have gotten such a good deal on a house you really like that you won't mind at all.

Good luck.

Fri May 16 2008, 08:32

Michael,

Please keep in mind I do mortgages and not real estate. With that being said real estate is always a gamble. There is no definate answer as to yes we have hit bottom or no we haven't hitten bottom yet. I've heard many different things such as the market will correct it self soon and others say that we still have a ways to go. But like a couple others have said prices have dropped and interest rates are low I would say now is the time to buy. Also in regards to interest rates I've heard that they will start to rise here soon and will not be coming back down for a while. So you need to put your trust in a good real estate agent as well as loan officer. Please let me know if I can be of further assistance. Thank you and good luck

Fri May 16 2008, 07:55

It is quite conceivable that the home you are looking for is available at a lot less than a million dollars right now -- the market sometimes is what you make it. Timing the market is a hit or miss proposition. Perhaps look at your time horizon for staying in your new home and compare the lifestyle sacrifice you are making now and figure out if waiting is worth it to see if the market may go lower. Many people are thinking it is a good time to buy and we are seeing buyer traffic. Unless you have done this already, you may wish to discuss your specific situation and what you are looking for with someone.

Thu May 15 2008, 19:50

If you look throughout history, you will see the market has always operated in regular cycles. The cycles are from 5-7 years typically. Since our market peaked in 2005, we have a couple more years to go before we truly are at the bottom. While we have seen the worst of the decline, we still have a little ways to go. My thought however is that since both interest rates and home prices are at their lowest in years, now is an excellent time to buy. Best of luck to you, let me know if I can be of further help.

Thu May 15 2008, 18:14

Like the stock market, no one knows when we've hit bottom until we're on the way back up! I've heard estimates anywhere from this spring until 2010. Just keep an eye on the market - if prices seem to be increasing, make your move.

Thu May 15 2008, 14:20