Reply to DC Housing Prices drop beginning

Forum Index » Real Estate

Reply to "DC Housing Prices drop beginning "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This point that people loosing theirs jobs are primarily waiters and bartenders, who are not relevant to the housing market for SFH strikes me as a very sheltered and naive view. What about the people who own the bars and restaurants where the laid off waiters and bartenders used to work? What about professionals who work in the travel and hospitality industries, for example? There are so many people who are impacted by the current crisis. [/quote]

Just be patient; the drop is coming. We are already seeing it in Arlington as the Amazon binge cools off. Houses in Pentagon City and Del Ray are selling for 10% less than they would have otherwise  - check out sale prices in the last week in both neighborhoods compared to 6 weeks ago.

We are in a situation where nationally we will likely have unemployment above 15% for the next 18 months and will potentially see a global depression into the late 2020s. I would not touch the DC housing market until at least this October. Having said that, I do not think we will see a genuine crash in real estate prices in this area given increased government spending on contractors, but I do believe we will see at least a 15% drop by next year.[/quote]

Links please.[/quote]

Yeah I'm curious too. We bought our house in the beginning of April in North Ridge, Alexandria (we were also looking at Del Ray). Our price point was $850K max, 3br/2ba minimum 1,500 sq ft. Everything in that price point in Del Ray flew off the market and ended up going above $850k and now there's not really anything. We feel glad that we got our house which we think was a pretty good deal in part because less people were looking and we were actually able to do an inspection and financing contingency. But we still paid a touch over full list because there were two offers. The market in our price range subsequently has been super dry with only low quality, poorly-priced houses that have been on the market for a long time (like pre-Corona). If anything I'm seeing the higher priced homes sitting, but we could've never bought those anyways. In our price range things still seem to be moving quickly.

Now, I fully expect housing prices to go down. But I think the market is going to be super dry. A lot of people, at least in our price range, have mortgages that will qualify for forbearance. Only people very desperate to sell will list. And it'll be harder to find qualified buyers because of how stringent lending standards are becoming. It's a good question how much prices will fall. 10%? Maybe. 20%? 30%? worse? Honestly, if it gets that bad around here, well then things will be really really bad all around and a housing crash will be the least of my worries. I'm just glad we'll have our home to retreat to in that situation. It's our forever home and basically both of us would have to lose our relatively secure jobs with no employment for a couple of years before we'd not be able to pay. And again, if that happens to us given how stable our jobs are, well, the world is basically falling apart. Can't predict or plan for that scenario.  Everything right now is changing so quickly that it makes pretty much no sense to predict how it'll look 2 weeks out let alone months from now.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics