A comparison: Seattle to DC metro. Wow, what a difference
I decided to relocate to the DC area thanks to a job opportunity. Since I found out about the potential to take the position I've been researching the local market in Northern Virginia while still keeping up with the Seattle market conditions.
If you haven't been tracking the DC metro market (which NoVa is part of) the bubble here has popped. DC metro is down 7% from last year (per Case-Shiller) and certain pockets are down 15% YOY.
Demographically, Fairfax and Loudoun counties have a median family income of $100K, nearly $25K higher than King County. The population growth in Loudoun has been up around 100% over the past 5 years.
There is a huge boom going on in commercial construction in NoVa. There's NOTHING to compare this to in the Seattle area. Seattle is asleep on this level. You can't drive a quarter mile without coming across a brand new midrise office complex, and another, and another... and yet another. And as you might have guessed they are mostly vacant.
On a personal level, pretty much everyone I talk to brings up realestate - buying, selling and asking if I'm going to buy here. I'm getting all kinds of advice from "start looking for a killer deal on foreclosures" to "now is a great time to buy since prices have come down". Everyone seems to know someone that wants to sell, can't sell, or knows a realtor that would love to work with me. However you still can't easily find condos, townhomes of a SFH that would come close to cash flowing as a rental.
Biggest difference though is everyone accepts that the market has tanked and the only point of contention is how long it will last.
If you haven't been tracking the DC metro market (which NoVa is part of) the bubble here has popped. DC metro is down 7% from last year (per Case-Shiller) and certain pockets are down 15% YOY.
Demographically, Fairfax and Loudoun counties have a median family income of $100K, nearly $25K higher than King County. The population growth in Loudoun has been up around 100% over the past 5 years.
There is a huge boom going on in commercial construction in NoVa. There's NOTHING to compare this to in the Seattle area. Seattle is asleep on this level. You can't drive a quarter mile without coming across a brand new midrise office complex, and another, and another... and yet another. And as you might have guessed they are mostly vacant.
On a personal level, pretty much everyone I talk to brings up realestate - buying, selling and asking if I'm going to buy here. I'm getting all kinds of advice from "start looking for a killer deal on foreclosures" to "now is a great time to buy since prices have come down". Everyone seems to know someone that wants to sell, can't sell, or knows a realtor that would love to work with me. However you still can't easily find condos, townhomes of a SFH that would come close to cash flowing as a rental.
Biggest difference though is everyone accepts that the market has tanked and the only point of contention is how long it will last.
Comments
Rent for a year and watch the chaos around you as the market implodes and then...decide whether or not to make your move.
Good luck in DC!!
Prices did drop a good deal, but those of us who had owned for longer than a year (I owned 3) still did quite well. When my place first went on the market things were dead, dead, dead. By the time I sold in summer things had picked up somewhat.
Buyers are also NOT getting closing costs paid for like they were. More units started moving, there was less of a glut on the market. The condo market was helped by a lot of new condo projects converting to apartments (something I expect to see in Seattle). In short, there is some indication coming out of the East that the market there is close to or at bottom.
In my particular area, some friends of mine got more for their place selling after I did.
Anyone who tells you the decline in real estate will be endless everywhere is about as blind as those who say the market will only go up, up, up.
good luck, Alexandria, Virginia is a particularly nice area.
What's unclear to me is why DC area started to see some serious price declines while cheap financing was still readily available. That, and why the market would start to recover once lending standards tightened and jumbo rates increased. Affordability has gotten much worse over the past few months. I can see why certain neighborhoods would see upwards pricing pressure against a general decline - traffic in DC sucks and it could make sense to buy closer in. However there's no clear catalyst for a broad recovery. Quite the opposite.