All real estate is local is one of those sayings that has become part of common knowledge because it is true. The primary determining factor for value for real estate is location, because of the unique nature of real estate is that it cannot be moved. A home in McLean, Virginia will be valued differently than the same exact home built in Falls Church, Virginia. Both homes may have similar same proximity to the city center of Washington, DC and both may have the same lot size, both may be in the Fairfax County school system, but the location is different.
Location in real estate can even be so specific as to mean where the home is located in the neighborhood. For example a home backing to a busy road is going to be valued differently than one at the end of a quiet cul-de-sac. Location determines the proximity to employment, access to public transportation, which public schools the students in the neighborhood attend as well as private education availability. Location determines distance and quality and quantity of shopping, what cultural and community opportunities are provided, parks and governmental services. Location determines a myriad of factors -some may even be unique to the location!
The headline for the WSJ blog article dated May 26, 2015 proclaimed: “Housing Bubble? Despite Rising Prices, Most Economists Still Say No”. The link to this story is: http://blogs.wsj.com/economics/2015/05/26/housing-bubble-despite-rising-prices-most-economists-still-say-no/?mg=blogs-wsj&url=http%253A%252F%252Fblogs.wsj.com%252Feconomics%252F2015%252F05%252F26%252Fhousing-bubble-despite-rising-prices-most-economists-still-say-no
The key words in the article in my professional opinion are “some markets” because the article is referring to the entire United States. One of the markets identified as having price gains year over year which benefits Sellers more than Buyers is the Washington, DC metro area. Yes there are some areas within the Washington, DC metro area which have recovered substantially and are experiencing price appreciation, where it is a “Seller’s market”. Where there are multiple offers and escalation clauses. Where demand is greater than supply.
There are some areas of the Washington, DC metro that have not fully recovered, where it is a “Buyer’s market”. Where supply is greater than demand.
So when people ask me “how’s the real estate market”, I answer “it depends”. Because it does depend on the location first and foremost. Understanding real estate market conditions is multi-faceted and requires deep understanding and market knowledge. A professional full-time, experienced Realtor® is the best source for understanding the local market forces that contribute to value.
Whether looking to buy or sell in the area, Karen Briscoe and Lizzy Conroy would be delighted to be of assistance. The Huckaby Briscoe Conroy Realty Group offers real estate expertise for the Northern Virginia, Washington DC and metro Maryland markets. Please contact via the means most convenient for you: www.HBCRealtyGroup.com, 703-734-0192, Homes@HBCRealtyGroup.com.