Washington D.C. Area Tops Real Estate Market List

TRUCKEE, CA – Jan. 6, 2011 – Clear Capital (www.clearcapital.com) released its monthly Home Data Index™ (HDI) Market Report, reporting a year-over-year national price change in 2010 of -4.1 percent, and expects another -3.7 percent year-over-year change in 2011. The HDI Market Report provides the most current (through December 2010) and granular analysis of how local markets performed compared to the national trend in home prices, as well as a 12-month forecast of what to expect in 2011. “In terms of home prices, this past year has certainly been characterized by uncertainty,” said Dr. Alex Villacorta, senior statistician, Clear Capital. “Tax incentives and high levels of distressed sale activity had counter effects on home prices which contributed to the fragility of the markets.”
Strong Market Contenders
Major cities in the western Gulf states, and Washington, D.C. are least likely to see high dollar declines in home values. Washington, D.C. follows-up its strong performance in 2010 with an expected 6.5 percent year-over-year price change in 2011. The District will be an interesting market to watch this year, though, because while it’s unlikely employment will fall, these numbers have been tempered with the added uncertainty due to the freezing of federal salaries, effective Jan. 1, 2011.

Owners’ Equity in Household Real Estate Heads Back Up

The Federal Reserve's Flow of Funds Report shows Q2 and Q3 of 2009 trending back upward in terms of net equity in residential property across the country, which is another positive indicator that perhaps we have turned a corner.

Things seem to be loosening up a bit

A lot of people have been lying low in terms of buying or selling real estate unless they were forced into action by hard to control factors like a job transfer. Just in the past several weeks there seems to be an across-the-board increase in people coming out to engage once again, sensing perhaps a safer environment in which to buy or sell. Buyers don't want to run the risk of their purchase losing value after they buy it. Sellers haven't wanted to walk through the fire of an aggressive buyer's market. Who knows what the future will bring, but it seems as if the cycle might be changing.

Termite Inspections

Years ago, almost all, if not all, lenders required clean termite inspection reports for a property to proceed to settlement. These days, since it is not uncommon for the lender not to require a clean termite inspection report, the termite inspection is not as matter-of-fact as it used to be and is sometimes omitted, even though the buyer was entitled to have one performed. Buyers should be aware of whatever provisions are in their purchase contract, regardless of whether or not the lender requires a termite inspection. The Termite Inspection paragraph of the commonly used Regional Contract in the Maryland, DC and Virginia area offers protections for the buyer in case of termite infestation and/or damage.

The greater Washington DC real estate market seems to be a little schizophrenic right now. Homes in good locations and in good condition and that are priced well are often experiencing multiple offers and many time with escalation clauses resulting in contracts well over asking price. Homes that are lacking in any of the aforementioned area tend to linger longer and are more subject to traditional "buyer's market" dynamics.

2005 Job Growth Strongest in 5 Years

Washington Post, Monday, February 20, 2006; Page D02
The Washington area added 81,600 jobs in 2005, making it the strongest calendar year since 2000. But those jobs weren't created evenly across all sectors, and the differences in the pace of growth across industries provides a look at how the employment base of the region is changing.
The number of jobs in the area rose 2.8 percent for the year. Therefore, any sector with a higher pace of growth is expanding as a proportion of the local economy and any sector growing slower is shrinking in relative terms. By that measure, the big winner is the leisure and hospitality sector, which includes restaurants and hotels. It grew 4.7 percent. That reflects the rebound of the region's hotel and travel sector since tourism fell off in 2001 and 2002; more visitors means more people hired to take care of them.
The Washington area added 81,600 jobs in 2005, making it the strongest calendar year since 2000. But those jobs weren\'t created evenly across all sectors, and the differences in the pace of growth across industries provides a look at how the employment base of the region is changing.
Other big gainers were the construction sector, reflecting a booming residential real estate market, and professional and business services, which includes many companies that do information technology work for the federal government and have benefited from higher homeland security and defense spending.
Laggards include government jobs, which grew 1.5 percent. The federal government, it appears, is expanding by hiring contractors far more than it is hiring people directly. And the information sector, which includes telecommunications and publishing, lost jobs as the telecom industry continues to consolidate.
-- Neil Irwin

Multiples Live On!

What a surprise, after all the pundits downtalking the real estate market! We just had more than 10 offers on a listing in Bethesda which went for way over list price. Maybe you can't believe everything you hear or read.