Home prices won’t show any year-over-year appreciation in 2011, according to the latest average of 110 forecasts from economists and housing analysts surveyed by MacroMarkets LLC. Based in Madison N.J.
The survey shows that economists expect home prices to fall by 0.17% in 2011 as measured by the S&P/Case-Shiller index of home prices in 20 U.S. cities including the Washington DC metro area. The average forecast for 2010 calls for the Case-Shiller index to ultimately show that home prices ended the year down 1.13%.
Some 96 analysts surveyed made their forecasts public. Of those, 30 expect prices to fall next year, and another 30 are calling for annual home price appreciation of no more than 1%.
Inside the Beltway: Chevy Chase Real Estate
Inventory inside the Beltway is still on the low side. Many of the homes currently listed have been on the market over 90 days. A number of properties that were for sale were taken off the market during the holidays and will likely return to market in the spring to try again. This of course will create more competition.
I put several houses on the market in December. All had very good traffic and one went under contract in a week. We expect more and more homes will start coming on the market in the next month or so, as we move into the spring real estate season which begins at the end of February, beginning of March.
Selling Your Chevy Chase Home?
Chevy Chase home sellers still need to remain cautious about overpricing. It is the one factor that will cause a property to sit on the market a long time. It is important for the seller to have their realtor give them an overall analysis of the highest price sold in their neighborhood as well as the average price. Days on market in relation to list price and eventual selling price are also critical. Most houses sell within 5 percent of their list price. Huge negotiating spreads are very unusual. Buyers are price savvy and watch the market closely. When a house is very competitively priced buyers will make their move, but often not until then. It is also in a seller’s best interest to stage their homes, make necessary repairs and improvements to show the property in its best light. Buyers are picky and can afford to be.
We are having a seminar in February to help sellers learn what is important in terms of repairs and staging before they put their Chevy Chase home on the market. We will also share which improvements have the most financial return over the short term and long term.