Washington D.C. – They’re Crazy for Homes Here!
When you think of the Great Recession, you can’t help but think of Washington D.C. After all, this is where bailouts were voted on, where stimulus packages were created, and where many Americans place the blame.
But most of the people who live in Washington D.C. don’t work on Capitol Hill. They’re simply hoping the economy starts to gain steam along with the rest of the country!
So far, it looks like the District’s housing market is starting to gain some steam of its own. If you plan on buying one of the homes for sale in Washington D.C., be prepared to open up your wallet. By the end of 2012, the average monthly mortgage payment here was one of the most expensive in the country – more than even Hawaii and California!
In fact, realtors in Washington D.C. are reporting all-out bidding wars taking place. One house in the District fetched nearly 170 offers after it was put on the market! (Amazingly, the home was a simple gray townhouse, with water and termite damage inside!) While most of the homes for sale in Washington D.C aren’t quite as sought-after, be prepared to fight if you fall in love with a house here. Odds are, someone else is in love with it, too!
Realtors say that people are even snapping up homes that haven’t been built yet – just after looking at the floor plans.
So, why are people going crazy for homes inside the Beltway?
There are a few reasons:
First, Washington D.C. isn’t all that big. With more than 630,000 people trying to squeeze into only 68.3 square miles, if you want to live here, your choices are somewhat limited.
Second, the District has been plagued by high rent prices. The average apartments for rent in Washington D.C will cost you close to $2,000 per month! At that rate, it’s actually cheaper to go out and buy a home (since the average mortgage payment is about $400 less than that). While experts say landlords will have to slow down the skyrocketing sometime soon, don’t expect the prices to come down. Instead, expect the apartments for rent to stay at relatively the same price.
Third, there isn’t a whole lot of selling going on – at least, there wasn’t at the end of 2012. If prices continue to go up and the bidding wars continue (which they should, as long as inventory stays as low as it does), more homeowners should be convinced to put their homes on the market.
Fourth, there is a surge of 20- and 30-somethings moving to town (and there has been for several years). They’re actually showing up in record numbers, and they all need a place to live!