Reply to Will Montgomery County ever recover?

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Reply to "Will Montgomery County ever recover?"

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[quote=Anonymous][quote=Anonymous]I'm concerned that Montgomery County's planning commission has zero economic sense. There are close to 50,000 homes new homes in the pipeline in the next few years. These are almost all concentrated in Bethesda, Rockville, and Silver Spring. These homes are entering the market at the same time when there is a large bubble of residents moving into retirement which means downsizing and selling homes.

This type of surge of inventory can only work if there is a matching surge in potential buyers. If MOCO had won Amazon, it would be a good move but MOCO putting all its eggs in one basket with Amazon was a bad choice.

Its basic supply and demand. More choices than buyers always equals prices dropping. Inventory is a huge driver for local markets. In the next few years there will be far more expensive homes than buyers with the money and desire ti live in Montgomery County. This will push down prices. Developers are more numbers focused and will run a comparable against holding out or dropping the prices. Buyers will end up purchasing newer homes over older homes. Older home owners can be more stubborn and stick to pricing too high only to end up selling at even greater loss.

On the upside, the problem of people not being able to afford a 4 bedroom home will be alleviated in Montgomery County. On the downside, people who bought high will be out of luck. Just watch you'll be able to pick up a 600K older home in North Bethesda/Rockville and a 400K older home  in close-in DTSS in a few years. Bethesda will start to see more 700K and 800K older homes become available. [/quote]

Except not building single family homes [/quote]

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