Nathan Dart breaks down what the market place looking like in the Washington D.C. region for spring 2016. Right now we are facing a housing shortage, which is normally thought of as good news in this industry, and for the most part it is. But this particular housing shortage is a little different from what we have seen in the past.
Today, we are encountering a shortage of affordable housing; we are finding is a lot of the homeowners who bought houses in say, 2004 through 2006, are still upside down and can’t sell their home and get out the equity that they need to go ahead and buy that next house. Typically, buyers purchase homes that are priced 37% higher than the one they leave, so in order pick up the market, we need houses in the $250-$550 range to sell, and to sell with enough equity that they can go out and buy the other more expensive houses, where the market is a bit sluggish.
Homes selling between say $250K and $550K are entering an extremely competitive marketplace. We have houses in that $250-500 price range selling with multiple offers, sometimes as many as 20 if they are priced correctly (which is why pricing your home low enough is so important!).
If you know anyone within that price range that is looking to sell in the near future, now is an awesome opportunity to do so.