The market is beginning to tank, as this story about Washington, D.C., suggests, and as many other stories I’ve seen (good blog source here) from other cities (San Diego, Vegas, Boston, Miami, etc.) corroborate.
The media is falling down a bit on this one, however. A story a few days ago stated that “experts” say that price increases in the D.C. area will moderate to 4-5% growth next year. Very well, except that listing prices are already down 6% in the past two months (a much better indicator than old data like this). And given that the market has gone from a situation where bidding wars were common to a situation where many houses sell for under asking, the real decrease in selling prices is probably more like 10%.
(Note to D.C. condo investors: Last year, approximately five thousand condos were sold in the D.C. area. According to the story quoted above, 47,000 new condos are coming on the market in the next three years. You know what to do (I hope)!)
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