Local Market Report, January, 2009
Demand is still quite high in my areas of Montgomery County and Northwest DC – Homes are being sold…, but there is no question supply is also extremely high right now. The result is that the most desirable homes, the best-marketed homes, and the most strategically-priced homes (not desperately-priced homes), are selling. The rest are sitting longer than they have in a decade.
My advice to sellers is that they can still get good prices for their homes, but it’s not a time to expect that simply listing your home in the MLS, sticking a sign in your yard, and entering an ad in the paper or a real estate publication will do it. It’s too competitive right now.
The good news for my clients is that we’re up against amateurs. As many as 80% of the agents who are members now of the Greater Capital Area Association of Realtors began working in this business within just the last 3 years. They’ve never had any experience at all in this kind of competitive environment. Good, experienced real estate professionals will sell their homes, while the inexperienced ones will sit at empty open houses, and bemoan the market.
My advice to buyers is that sellers with inexperienced agents are panicking right now. Consequently, there are bargains to be had, especially if you have an agent who has some experience in spotting them.
The good new for my clients is we haven’t had this many homes to look at in years, there is less pressure to act quickly and aggressively, and your bargaining position is extremely strong. The one word of caution is that this will not last forever. After sellers realize that the market has stopped dropping, it is expected that prices will begin creeping back up rather quickly. (Many even predict single digit percentage increases from where they are now, by the end of this year.) This market is down - historically down, but the Washington DC area is one of the most insulted areas in the country with regard to the economy because of the consistency of government dollars here, and the new Democratic administration is pumping in even more now to stimilate the economy. Owning your home has always been an American's best investment, and it will continue to be, especially for those buying at current prices.
- NUMBER1EXPERT™ 
