Winter 08/09 Quarterly Update

As the perception of the current real estate market gets worse and worse, many of our clients are looking for clarity.  With our combined 30+ years of real estate experience, Ruby and I hope we can provide some insight.  In truth, there are many buyers in this marketplace and there are many options out there for people with equity in their current home, cash for investing, and good credit.  Here are some of the buyer types that are making up many of the recent purchases:

Investors   Real estate has always proven to be a strong long-term investment, especially in areas like ours, where the local economy and job outlook remain strong and steady.  Would-be buyers who have been sitting out the market or who are affected by the tightening of credit have created a strong demand for rental properties.  Although investment financing isn't as attractive as it once was, with prices as low as they have been in many years, investors with a long-term mindset are beginning to get into this market and can do so with confidence.  

1st Time Homebuyers   Financing has definitely loosened up over the past few weeks, and interest rates are coming down, so we are seeing an increase in this sector of buying.  Once 1st time home buyers see that their mortgage payment can be nearly the same as the cost of renting, they are taking advantage of the exceptional buying opportunities that are out there.

Move up Buyers   The beauty of being a move-up buyer is that although most homes aren't selling for what they would have 2 or 3 years ago, that bigger home with more amenities doesn't carry the same price tag it did either!  With the increase in inventory across all price ranges, there are some fantastic buying opportunities out there.

Urban Lovers   The trend for years was to buy large and in the suburbs, but rising gas prices, traffic congestion, and the desirability of being closer to employment, shopping and entertainment has created even more demand for close-in urban neighborhoods.  The old real estate adage of Location, Location, Location is still the rule--and the close-in communities are holding their value much better than those in outer exurban areas.  

Downsizers & Retirees   Those with enough equity in their current home who have been living here for a long period, make up a large portion of today's buyers.  The great news for those who are looking to retire is that they don't have to leave their family and friends behind as they move to Florida or Arizona.  There are many retirement options in the DC area and the tax law that allows either $250,000 or $500,000 tax exclusion makes the opportunity even more appealing. 

As home owners ourselves, we know that every sale or home purchasing decision is a personal one. Many circumstances can affect your decision to buy or sell: you may be adding a new family member, you may have too many unused rooms that you are heating and cooling, or you may be a long-time renter who just wants to buy your own home and paint your living room lime green!  The best part of our profession is helping people realize their dreams and their real estate goals.  In our ongoing commitment to providing first-class service, we can help you with the major transition that buying and selling bring, and we can confidently say that if we can’t answer a specific home-related question you have, we are a phone call or email away from an expert in our professional network who can.
So if you have any home-related questions or have thought about moving, or if you have any family, friends or work colleagues who would benefit from our experience, please don’t hesitate to contact us.

Our team relationship means that you have two seasoned professionals on your side - an advantage in any market!

We look forward to hearing from you when the time is right.

Your Two Home Pros