A New Conundrum in the D.C. Real Estate Market

A New Conundrum in the D.C. Real Estate Market
August 22, 2007 - 12:50pm
Adam Tuss, WTOP Radio

WASHINGTON - Buy or sell? Rent or own? It is a tricky time in the local D.C. real estate market. Now there's another conundrum.

New statistics from the Metropolitan Regional Information Systems show that while the region has the highest number of properties for sale on the market since October 2006, home prices are actually spiking by nearly 10 percent in some areas.

"What we saw in the housing sales data for July 2007 (compared to July 2006) is that closer-in jurisdictions to the center of the region where the jobs are had significant average housing price increases," says John McLean, senior fellow at George Mason University's Center for Regional Analysis. "The District was up about 6.5 percent, Montgomery County was close to 10 percent, Arlington was up over 9 percent, Alexandria was up 3 percent and for the first time Fairfax County was up almost 2 percent. It had been negative there for several months."

Those numbers are in contrast to some other areas, away from jobs, which saw decreases. "Contrast that with minus 3 percent in Prince George's County, minus 5 in Loudoun and Prince William counties. It appears that the closer-in markets are not only able to sustain prices now, but are actually moving higher," says McLean.

He believes our commutes are definitely playing a part.

"Traffic congestion in many cases is not as bad in some of the inner areas of the region as it is in some of the outer, suburban areas."

Residential properties in many of the areas where prices have shot up are also staying on the market for shorter periods of time.

"Right now we are looking at two months for the close in neighborhoods, and that is really healthy and normal," says local real estate guru Donna Evers. "That number has come down from three months in January of 2007."

Evers also believes if you are shopping around for a property, now may be the best time to get in.

"Because it is August, I think you can get a good deal on quite a few things. August and December are the best months to look for good deals, because people are tired of waiting out the Spring and Fall seasons."

(Copyright 2007 by WTOP Radio. All Rights Reserved.)
Adam Tuss, WTOP Radio