Market Trends

2011, IN REVIEW

Somewhat less transaction in most locations, price points and property types
Difficulties in obtaining mortgages during beginning of the year which were worked out during the last half of the year, lower mortgage maximums, increased rate/MIP premiums
Less inventory required the return of the bidding war for high demand property types and locations
Start of market stabilization; bottom out in most submarkets, reduced short sales and foreclosures
Inflamed buyer and seller anxiety due to increase in constant statistics, often misleading information from 24/7 “news sources,” pundits and social media outlets
Decline in self renovation, custom homes and flipping, as costs for completed projects exceed value
added
Excessive new appraisal and loan underwriting rules, several years too late, which impacted sales

Regarding our DC METRO area, continued stabilization as demand for close-in housing accelerates, increased jobs and low unemployment. Our area will out perform the rest of the country in terms of economic considerations including wages, job growth and real estate performance
New priorities with people wanting more quality of space than quantity, willing to pay a premium for locations with an urban feel and an easy commute
More casual and serious buyers and sellers appreciating and seeking advice from an experienced, trusted real estate and mortgage advisor, to avoid the pitfalls of costly shortcuts
Less focus on knee-jerk statistics and articles, more focus on big picture and quality of life consider- ations in housing; people are tired of too much “noise” from too many 24/7 sources
Changing floorplans and features in condos, townhomes and detached homes focused on quality of living space. Smaller “formal” rooms, if at all
Modest increase in mortgage rates gradually rising throughout the year (still at historic lows)

Global and domestic economic and political considerations are having an immediate world wide impact (often short lived) on financial markets and consumer psychology
US Elections taking priority over short and long term solutions, social unrest on many levels
Government increasing or decreasing support in mortgage availability, modifications, underwriting
and appraisal standards
Some sources are predicting that continued job growth in METRO DC will outpace CLOSE IN housing
inventory, and result in a housing shortage in 18-24 months (this trend can be seen with the return of bidding wars for close-in, well marketed, properly priced properties)