The Tide is Turning

There was a marvelous article in the Washington Post this past weekend in the Real Estate section. Check out "The Tide is Turning" by Kenneth Harney, who writes The Nation's Housing article each week. Publish date is Saturday, January 6, 2007 - Page F1.

Harney's premise is that the 18-month market correction has just about run its course. While we don't expect boom times again quickly, housing prices in many markets appear to have stabilized. Interest rates are excellent for buyers right now. The economy is still on solid footing. Take advantage of all the free information out there and study your local housing prices.

Our experience here at Condo 1 seems to confirm Harney's premise. We just closed two sales at the Atrium Condominium in Rosslyn last week and one was a unit that I didn't expect would sell. There are still some great buys out there, such as Atrium Unit #104 (gorgeous 2BR, 2BA for $566K), but these won't last long.

Happy House Hunting!

Tom

Is this a good time to buy?

Is this a good time to buy? That's what I get asked every day. My short answer is: If you are purchasing a condominium as your principal residence, this is an excellent time. I've seen prices weaken 15% or so in the past year on standard 1BR units. Some sellers are anxious and are pricing their property accordingly. Take advantage of it now!

The economy in the Washington area is very strong and interest rates are quite reasonable as of the date I'm posting this. If these factors hold steady, then I believe we're close to the bottom of this "buyer's market." Especially if you're buying for long-term hold (such as a principal residence) it makes sense to JUST DO IT. Trying to time the market just right is a fool's game. Wait too long and suddenly you'll find you missed the bottom. I have many clients who felt that properties were overpriced in 1995. They are still renting today and missed out on hundreds of thousands in appreciation. The rate of appreciation on homes in the DC area during the last 20 years is . . . 7% per year. It's like having your cake and eating it too. For all intents and purposes, the owner of a home here lives for free compared to a renter.

Is it possible to lose money in real estate? Of course! Take it from someone who has done it with regularity. But the long-term trend is relentlessly upward.

There are some nice deals to be had out there right now. Take advantage and don't let the Washington Post scare you into inaction. Remember, by the time the Post announces that a Buyer's Market exists, it's probably close to being over . . .

I welcome your thoughts!

Thanks,

Tom Meyer