Reply to What is truly going on with the DC area real estate market, please explain?

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[quote=Anonymous][quote=Anonymous]Long term the factors that are going to drive the market are these:

1.  In and close to DC, there is a limited supply of land.  The one thing you cannot produce more of in DC is land.

2.  The opposite is true in the outer suburbs.  You can always go out another few miles and add on another ring of new construction.  There is a huge supply of land in the outer suburbs, and will be for a while.

[b]What does this mean?  DC prices may flatten, but they will not collapse and will keep rising at a steady rate.

Suburban prices, at some point, are going to crash.  The demand will drop, the supply will stay stable...boom.  Drop in prices.[/b]  Over time they will recover, so you will be fine if you are in for the long haul, and nothing to worry about if you plan on buying your house and living in it for a while...but short-timers and speculators will at some point find themselves losing money.[/quote]

Are you just...confused?

Limited land means every parcel is even more coveted and therefore more expensive to buy. That's how it works. Its with cities of endless sprawl that you see the reverse - buyers just hopping to the newest subdivision one highway over to get what they want. That's why Nashville and Houston have the problems they do. Endless building in all directions.

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