Home Selling in 20012>Question Details

Alex Labeach, Home Buyer in 20012

Will the home prices in Washington, DC sub-divisions of Colonial Village and Shepherd Park decrease?

Asked by Alex Labeach, 20012 Tue Nov 6, 2007

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5
Leave it to agents to give you a crappy answer. Find out what the inventory in months is, in the neighborhood of interest. If the inventory for homes in your broad price range is over 6 months, expect prices to drop. And, the bigger the number, the harder the downward correction. Sellers have to drop their prices in order to get the properties sold. This has been a metric used for housing for decades, and housing markets tend to (very slowly) revert to equilibrium between buyers and sellers. Inventories below 6 months typically provide a seller advantage - over 6 months a buyer advantage. Inventories are now average 10.9 months now, I believe, nationally.

I'm not telling you anything not commonly understood in the investment community. It doesn't mean you have to wait though - just lowball by an ungodly amount. Some sellers will eventually come around because they need to move or have to liquidate.. And, save some more money, and use a real estate lawyer for giving offers as well as for reviewing all settlement documents. It's not like sellers won't respond to your inquiry! And, you'll save the commissions.
3 votes Thank Flag Link Wed May 28, 2008
Dave and Lisa, thanks for providing a thoughtful answer. The Realtors who answered ought to be ashamed of themselves. Why is it that most Realtors are such self-serving shills?
1 vote Thank Flag Link Thu Jun 5, 2008
That's a hard question to answer for you right now Alex. What do I think will happen? We are in the spring market right now and are seeing a stabilization of the market. Our hope is that this is the start of a trend of upward or at least minimum holding your own. If you are thinking of selling, this is probably a good time unless you are wanting to take a chance on where the market goes next year.
1 vote Thank Flag Link Mon May 19, 2008
Are you considering purchasing a home there? If so, why not make your best offer now? Interest rates our still low. No one can predict what might happen with them just as predictions about appreciation or depriciation are difficult to make. If you are renting now, why continue to pay someone else's mortgage?There are programs and benefits available to many first-time homebuyers that your lender can advise you on.
Web Reference: http://www.northropteam.com
0 votes Thank Flag Link Thu Nov 8, 2007
No one can predict whether homes in a certain area are going to increase or decrease in the near future. I wish I had a crystal ball! Many people were surprised that homes in many areas have gone down in market value 2005 - a lot of people didn't expect that. If you look at real estate historically, home prices have gone up over time tremendously. Sometimes we'll go through periods of time where homes decrease or values stay the same for awhile as the market stabilizes. Many advisors feel that if you are going to be living in a house 5-7 years, it is usually a good idea to buy. Over time home buying is usually a very good investment if you plan on living in a home for awhile. You'll be able to take advantage of nice tax breaks and have pride of ownership in the meantime.
Web Reference: http://www.webberteam.com
0 votes Thank Flag Link Tue Nov 6, 2007
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