How much higher do you think DC area prices can go long-term?

[Anonymous]

Here we are in many areas of the region back to pre-crash prices. Now, it's easy to assume that because the prices returned to their high levels, that this is the new normal benchmark that despite future dips, prices will always return to. But, low interest rates were the cause of the current price run up. So what happens when rates are back in the 6% range and higher?

Will prices still increase? I'm assume that despite high rates in the 80s and 90s, places like San Francisco and NYC had pretty steady home price gains. Now that DC has a lot more going for it and a lot more reasons to cause real estate demand, will DC also see price gains when rates rise like it did for SF and NYC in the 80s and 90s?

Basically what I am wondering if we are seeing the top of the prices right now. When rates rise, will we have to wait for another crash and another recovery before we see rates this high again? Or is DC really becoming into its own and has nowhere to go but up regardless of rate hikes?

[Anonymous]

No we are still undervalued in relation to income

[Anonymous]

Anonymous wrote:No we are still undervalued in relation to income

I tend to agree. When I see brand new townhomes in the Mosaic district and Potomac Yards sell as soon as they can make them starting at almost a million dollars, this tells me that we have an enormous group of people making crazy money. Which makes sense. Fairly easy to have a couple making a combined income of 250K here. And much higher than that for many.

I also question whether the defense cuts will have any effect. They don't seem to have had much thus far. I think a lot of the defense workers are just moving right over to the intelligence and cybersecurity programs.

There is the looming baby boomer retirement on the horizon, but who knows yet what that will mean. I don't think everyone is going to just pack up and leave. It's not like older generations where everyone packed up and moved to Florida the next day after retiring.

When you see big changes coming to the area such as the Southwest Waterfront and Old Town Alexandria revitalization, I think you see even more reasons that DC will continue to become attractive places to live and work and increasingly less dependent on federal government spending. So it's not going to be a repeat of the 90s cutbacks.

[Anonymous]

Prices of homes will continue to rise faster than people believe to be sustainable and buyers will continue to pay more and more for them. It's a beautiful thing we have going here in DC.

[Anonymous]

Anonymous wrote:Prices of homes will continue to rise faster than people believe to be sustainable and buyers will continue to pay more and more for them. It's a beautiful thing we have going here in DC.

Is this sarcasm?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Prices of homes will continue to rise faster than people believe to be sustainable and buyers will continue to pay more and more for them. It's a beautiful thing we have going here in DC.

Is this sarcasm?

Not pp quoted, but I don't think it was intended to be sarcastic. Inventory is still so low that demand will continue to push prices up. I just don't see it ending soon. Once days on market starts pushing out a couple of weeks, then prices will soften (not drop, but not continue to rise at current rates).

[Anonymous]

The amount of money in this area is staggering. House prices will likely continue to rise. It is a shame that there are so few good options for moderate and lower income families. I am pretty conservative, but even I think it's time to raise the minimum wage in this area.

[Anonymous]

I say we have at least another 40%

[Anonymous]

What about the value of land close in, say an acre in Arlington, Alexandria?

Will it dramatically rise too?

Never hear anyone discuss the land part, just the house etc.

[Anonymous]

Anonymous wrote:What about the value of land close in, say an acre in Arlington, Alexandria?

Will it dramatically rise too?

Never hear anyone discuss the land part, just the house etc.

An acre in Arlington? LOL - that'd be an estate!

[Anonymous]

Anonymous wrote:What about the value of land close in, say an acre in Arlington, Alexandria?

Will it dramatically rise too?

Never hear anyone discuss the land part, just the house etc.

I think it's mostly the land that increasing in value - not the actual house so much. A little bit, but mostly it's the land.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What about the value of land close in, say an acre in Arlington, Alexandria?

Will it dramatically rise too?

Never hear anyone discuss the land part, just the house etc.

An acre in Arlington? LOL - that'd be an estate!

LAND is way more valuable than any of the crappy houses that are built on it here. That's why there are so many tear downs. An acre could have 4 houses built on it at least!

[Anonymous]

Anonymous wrote:What about the value of land close in, say an acre in Arlington, Alexandria?

Will it dramatically rise too?

Never hear anyone discuss the land part, just the house etc.

I could be wrong, but I think that a substantial portion of the 'house value' is actually the land and not the house.

[Anonymous]

I think the long-term outlook looks pretty good. DC is no longer the tired city it was before the turn of the century. When you think about just how much it has transformed and continues to, it's just staggering. It's almost like it's been racing to catch up to other large US cities for more than a decade now. When you just think about the sheer number of projects coming online and being proposed every day, it just blows your mind.

DC is finally on its way to being a capital city like other capital cities around the world are.

[Anonymous]

Anonymous wrote:The amount of money in this area is staggering. House prices will likely continue to rise. It is a shame that there are so few good options for moderate and lower income families. I am pretty conservative, but even I think it's time to raise the minimum wage in this area.

raising minimum wage will do nothing for the housing shortage problem a $20 minimum wage job will not get you housing in this town.