Will DC See Discounted Home Prices This Spring?

• March 22nd 2011

by UrbanTurf Staff

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This morning, The Wall Street Journal reported that recently-released data regarding a sharp drop in existing home sales and median price nationwide combined with low interest rates could make for a spring season when home buyers will find bargains in markets across the country.

From the WSJ:

The silver lining [to this data], say economists, is that bargain prices, coupled with low interest rates, might finally spur some buyers off the fence as the real-estate industry prepares for its busiest season. Even without the $8,000 federal tax credit that stoked sales last spring, industry watchers predict a larger number of transactions this year.

While this news could be good for the country on the whole, DC buyers should not hit the pavement this spring thinking they will see deals at every open house they visit.

In February, the DC area had the largest year-over-year increase for pending sales of existing homes in a decade, according data released recently by RealEstate Business Intelligence (RBI). Specifically, 4,044 homes went under contract in the area last month, a 33 percent increase over February 2010 (3,041 contracts). This data is in stark contrast to the nationwide drop of 9.6 percent in existing sales reported by the National Association of Realtors recently.

David Bediz, an agent with Coldwell Banker in Dupont Circle, also noted that there are other factors that make a buyer’s market for the area seem unlikely. In addition to an average median home sales price that is 5.5 percent higher than a year ago, Bediz said that the inventory of homes on the market is particularly low right now.

“I can report all my buyers’ frustration that supply in the DC area is very low. They feel the supply of homes that are desirable to them at what they consider a reasonable price is virtually nil,” Bediz explained. “In addition, they feel that any home they do consider desirable that is priced well usually receives multiple offers and they almost always get outbid.”

This article originally published at https://dc.urbanturf.com/articles/blog/will_dc_see_discounted_home_prices_this_spring/3198.