How nice it would be to say Yes. Instead, the answer is that it all depends. Market success and failures are zip code specific. The media reports national news, so be careful not to paint your house (or your zip code) with the same brush the media is using.
Our market in the general Washington DC area has strengths and weaknesses. The strong markets remain the usual suspects: Washington DC, Arlington County and the City of Alexandria. Fairfax County is too large to generalize; the closer in, the better the market. Given the climbing costs of transportation, those areas will continue to perform well, and will likely enjoy an early boost of price appreciation.
Inventory is key to turning the housing market around. High levels of inventory favor a buyer's market and lead to aggressive price negotiation. Building permits continue to fall and eventually housing inventory, both re-sale and new construction, will shrink. When that happens, we will start to see the recovery of the housing market. Earlier this year, some economists belived that the second half of this year would show real improvement. That optimism has been revised to late this year.
In my immediate experience, there is strong buyer interest in our real estate market. Most buyers are slow to act, and feel anxious that the market may continue to decline. If you plan to stay in your home for at least 4-6 years, then I believe you should consider buying a home. Longer than 6 years is a no-brainer; our market will improve and we will see price appreciation.There is no doubt in my mind.
I believe we are at the bottom of our market in the DC region, as we have already seen the closer-in communities improving. If you would like to discuss your particular situation, or review a value analysis of your home/community, please give me a call. I'd be more than happy to bring you up to date.
