Can it be both a buyers' and a sellers' market?

Recently my friend Chris said he thinks it's starting to be a sellers' market here in DC. He's right. And I think it's still a buyers' market in DC.  And I'm right, too!  This is where you will rightly be thinking..."hmmm a Real Estate agent is telling me that it's both a buyers' and a sellers' market.  Will he perhaps be offering to represent me in these transactions?" (and I will...later) Perhaps you heard the joke..."How can you tell if a real estate agent is lying?" If you haven't heard the joke, I won't be the one who gives you the punch line! The trouble is, my MOM told me that joke after I became an agent! I'll tell you, Rodney Dangerfield's got nothing on me! But seriously, How can it be that it's both a buyers' and a sellers' market? Let's look at the sellers' side first.

A Sellers' Market

After several years of lower prices and slowly selling houses, things seem to be picking up for sellers. Right now compared with last year,  there is significantly less housing stock available in DC and much of the Maryland suburbs.  In Montgomery county, over all categories, there are 26.6% fewer properties listed as this time last year. And in DC, the decrease is bigger: 37.8%  But these numbers don't even cover the paucity of properties in the range from $0-$399,000.  In this range it's much closer to down 50%. If you take a quick look at your favorite real estate website (like kurtbecker.kwrealty.com) you'll see how few houses are available now. This means that buyers compete more for fewer houses and is bound to lead to higher prices. This is borne out by the current prices.  After lower median prices in '09,'10, and '11.  Median single family home prices have rebounded to higher than 2008 levels in DC and just short of 2008 levels in Montgomery County.

A Buyers' Market

With all of these changes that benefit sellers, how can it still be a buyers' market? The primary answer is the interest rates. Interest rates are at absurdly low levels.  The banks are practically giving away money! The Washington Post reports 30-year mortgages at 3.55% and 15-year mortgages at 2.86%. If rates get any lower, lenders will be paying you to take their money! OK...hyperbole aside, interest rates have dropped to historic lows.  So while prices have been returning to pre-recession levels, interest rates have remained very low.  This makes a more expensive home more affordable both on a monthly level and over the life of a loan.

So What to do now?

You should definitely buy now. Or sell. Or both! This is a perfect time to upgrade! Kidding aside, I do think it is a great time to buy or sell if that's where your life is headed. 

Welcome! 

Who am I?

Welcome to my real estate blog.  Let me tell you a little about myself.  I've spent most of my adult life as a teacher in a middle school in Washington, DC.  Along the way, I became an "accidental" real estate investor in 2004 when I bought my first rental property; a fixer upper in the Ledroit Park neighborhood of DC. In 2009, I expanded my portfolio of Properties by adding another row house in Capitol Hill. By this time, I fully understood the value of the passive income so this year I added my third rental property in Petworth, another neighborhood in Northwest, DC.

When I started, I had no knowledge of Real Estate investing, but managed to muddle through with some good luck, good timing and good instincts. Along the way, I accumulated some crazy stories, but I also learned a bunch of lessons about real estate investing and financing.

Eventually friends came to me regularly for advice about real estate, and I happily obliged.  One person asked me why I wanted to go into real estate sales.  When I explained about my experience and my interests, he answered: "Oh, so you've always been a real estate agent; now you're just making it official." That had a true ring to it.

So now I'm excited to join Keller Williams Capital Properties. I'm very impressed with the support they give and the ethics they espouse and demonstrate.

Why this Blog?

Over the years I've developed significant expertise in real estate that I can share with potential buyers and sellers. Most posts will be my musings about the industry, but I may repost useful or thought provoking articles that are related...either tangentially or directly to real estate. So drop in and feel free to put in your two cents!

And as always, if you're in need of real estate services, advice or recommendations, I'd be honored to help you any way I can.