2007 and the Northern Virginia housing market

A few weeks ago, George Mason University held their 15^th annual Economic Conference.  One of the presentations given was by a gentleman by the name of John McClain from the Center for Regional Analysis – and he covered the 2007 Housing Market.  Interesting stuff!  Here are a few highlights:

 

z      The DC Area experienced record inventory levels in 2006, but by the end of the year, we’ve seen a return to more normal levels.

z      He expects prices to stay relatively flat – possibly even up by approximately 5% by the summer of 2007.

z      Our JOB GROWTH is still outpacing the supply of housing –

z      We’ve seen the time on market (DOM) at a level not seen since 1999-2000 but he feels we’ll settle in at or around a 90 day market – remember this is an average for the entire DC area – some areas are still moving quite quickly while others seem to be un-movable.

z      The market adjustment is near the end… inventory and pricing will begin stabilizing

z      Long term normal year over year price appreciation is around 7%…  we’re expected to be back in that range by the 2008-2009 time frame.

 

So what does all of this mean?  People ask me all the time “how’s the market?”  You wouldn’t believe it – people ask me at the grocery store, at school picking up my kids, over lunch, etc…  Well, if we look at Mr. McClain’s forecast, I think the market looks pretty good from just about every aspect.  Let’s think about it:

 

For BUYERS:

Let’s see, interest rates are still good, inventory levels are still good and prices probably aren’t going down any more…  sounds like a great time to buy!

 

For SELLERS:

Let’s see, interest rates are still good, prices probably aren’t going down any more and if buyers are all of a sudden realizing that it’s not a scary time to buy, we should see a significant increase in activity!  All great things.

 

Bottom line is – if you have been thinking about buying OR selling, now’s a great time to at least do some investigations – see if it might work out to be just the right time for you to jump in.  Give me a call – I’m always here and always ready to help!

 

JK