The 2013 housing market begins reinvigorated with talk of improvement, but for the first time since the bust in 2007 there is data supporting these claims. Research and statistics reveal the positive forecast isn\’t just wishful thinking or fiction, but that 2013 is moving into a competitive seller’s market. According to a Fox Business report, “housing starts, prices and confidence are on an upward trend and the tide may be turning this year to favor home sellers.”
As in any market that stands the test of time, real estate has its seesaw of highs and lows. The changes in property value can be subtle rises and falls, or severely bloated highs followed by volatile drops. Regardless of which circumstance we are subject to as homebuyers and sellers, deals can be made with the right resources.
From my experience, the residential real estate market in Washington, DC can be broken into three factions by property value. There is the market under $1 million, the market between $1.5-3 million, and the market consisting of properties selling at $3 million up. Each market has its own particularities and forces driving it such that each market acts differently.
The market below the one million dollar threshold is competitive, with buyers often over paying for property. The inventory is low and the demand to get into this price bracket is huge, and recently sellers are getting more money than they hoped for. When houses in this range are priced well, bidding wars can drive the price up significantly.
Properties listed between $1.5 million and $3 million are a great value in DC’s 2013 market. There is low inventory in this market as well, but buyer’s are less willing to overpay. When the houses are priced right they will sell quickly, usually within a matter of days. According to Kathryn Vasel for Fox Business, “Home sellers are shifting into the driver’s seat with experts expecting bidding wars to break out in certain markets due to the low inventory. While homes will sell quicker this year, they still have to be priced right.”
Homes listed at $3 million and up are also experiencing the ripple effect of a better overall market. While this market is less competitive, and seller\’s are less likely to get multiple offers at one time or receive offers above the asking price, homes are selling. Regardless of how much you\’re able to put into your next home, 2013 is quickly becoming a great year for selling and buying.