In the last several days, several of my buyers have discussed their concerns about the market. The news about the drop in sales in July freaked one out. Another client took the opposite approach. The drop in sales meant it was an opportune time to enter the market since less people would probably be searching. Except this is the DC market.
Take 1411 Monroe St, NW, pictured above. One of my clients wanted to see it. It's been on the market 11 days and it's listed for 449K. It's a fixer upper in a great location. In the notes section of the listing, it said "contact agent by 8/26 if you want to make an offer." Today is the 30th so I called the agent. I was told that they're one initial from ratifying a contract. Because I'm the curious sort, I asked how many offers he received. Although I've been involved in many multiple offer situations in the last two years, I was still shocked by his answer of ELEVEN offers. wow.
After I congratulated him, I hung up the phone and thought about the implications. Clearly the housing market isn't going down the tubes in DC. I think it's easy to assume the worst if you're following the national news. It does raise some interesting questions. Should you be following the news? Or should you be following your intuition? It's a tricky road.
My advice? Do a little of both. Follow the local real estate news vs. the national news. An accurate picture of what's happening in your chosen neighborhood will help your decision. For example, we bought on the edge of U St. Corridor because I knew a lot of development was coming in the next five years. We will definitely see appreciation. It might not be a lot of appreciation..maybe 4%. I think 4% appreciation over five years is better than 0% appreciation if you're not an owner. Maybe I'm biased since I'm in the business but I think a lot of people would agree with me.