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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]DC is a world unto itself, economy-wise.  No one can predict whether this will continue.   
If prices continue to rise, this is not a bubble.  But no housing market goes up continually into... infinity.  Every market has variation.  
If something happens to hurt the DC economy, or to strengthen the rest of the nation's economy, the market here will cool. I don't mean tank.  I mean some of the pressure will dissipate.  
This stuff is hard to predict.  Don't overbuy.  Don't be in a hurry to make such a big purchase.  Don't over-improve. They used to say, "buy the most expensive house you can afford."  The logic was that the value will go up, and hopefully, so will your earnings.  But with the housing market so volatile, and withl the job market uncertain, I don't put stock in that belief anymore.   We are buying very conservatively.  Don't buy into the hype, literally or figuratively.  If a real estate agent is pushing you into a price range that scares you, listen to your instincts and back off.    With the exception of a wealthy few, and of people snugly in a great home already, most new homebuyers and renters are over a barrel in this market.  It's not you, and it's not just you.  Think before you bid. Think before you escalate.  And do not waive an inspection clause.  If someone else gets the house because they did, let it go.  [/quote]

This is my comment.  I add that there is heavy pressure on a limited number of neighborhoods because of a failure of social services in many other neighborhoods--- schools, safety, tranportation.  If efficient public transportion(metro, trolleys) was ubiquitous, quality schools common, and violent crime less, buyers would have an exponentially larger pool of houses to choose from.   Prices would be more affordable.  The population attempting to buy into the modest-sized neighborhoods of Arlington, Del Ray, Upper NW, CCDC, Bethesda, etc., far exceeds what these neighborhoods can absorb.  Frustrated buyers would do well to work for better schools, transportation and safety across the region to see their prospects improve, and to share the wealth with all our neighbors.   [/quote]

+1000

This is exactly it.  The reason why people are paying a million for a tiny old house is because there is a perception that there is only a small number of quality neighborhoods in the region.

So, yeah, if other areas were improved, then things would even out.  There would be a larger pool of moderately priced houses in decent areas with decent schools.

But I think that the people who have already bought into those coveted neighborhoods are very active in keeping up the perception that their neighborhoods are really the only rational choices.   I think, in part to both justify and maintain, their high property values, they participate in stigmatizing other areas, areas that would likely improve if people moved into them.[/quote]

Throw in walkability and metro access (in blocks--not driving to a lot) and the list gets even tinier (ESP when you want quality public schools).  I think only 1 or 2 neighborhoods in the entire DC area meet this description.[/quote]

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