Here are some residential trends and insights from the Washington City Paper, with my own thoughts added in!
Home Prices in the Greater DC Area Heading Higher
According to data from the Greater Capital Area Association of Realtors, lower-priced listings were becoming scarce by November 2012. The inventory of home listings priced under $150,000 was down by 59% from a year ago.
Conversely, DC area home listings priced at $900,000 and up had increased by 59% from a year ago. This trend appears to be consistent for single-family homes, condos and co-ops.
Overall, this indicates a shift in the pricing floor that helps push home values higher across the board.
DC Metro Rent Costs May Dip Slightly in 2013
While the demand for housing in the DC metropolitan area is expected to remain strong, a spate of newly-completed apartments could soften rental costs, at least temporarily. Market analysts expect DC rents to drop by approximately 2% during 2013.
However, rent patterns can vary widely depending on the location, unit size and amenities. Don’t bank on your rent going down! If you are shopping for a new apartment, look for neighborhoods with a higher saturation of apartment development. You might find the best deal at an older apartment building that has to complete with the new units on the market.
New Development, Vitalization in Downtown DC Neighborhoods
Here is a quick rundown of what’s happening in downtown DC:
- 216 new condos in CityCenterDC, priced from $500,000 to $3.5 million.
- Shaw will have a new supermarket, a new hotel, and 400 new rental units.
- The Coast Guard will have a new home for its headquarters in Ward 8.
- New dining and retail development is in progress for Anacostia and Congress Heights.
- The Capital Riverfront has 10 restaurants coming in 2013, and a new supermarket in early 2014.
What’s behind all the new development? Some local economists say that the recession caused pent-up demand; others say that the end of the election-year uncertainty of 2012 has given way to new confidence. Most likely, it’s simple momentum taking hold; new development answers growth, but also encourages it!
There are many excellent neighborhoods in downtown DC, and I would be happy to show them to you! If you are looking for a home in Capitol Hill, Georgetown, Dupont Circle, or any other location in Metro DC, contact me for expert market guidance!