SHOULD HOME BUYERS WAIT TO TIME THEIR PURCHASE?

SHOULD SELLERS FEEL MORE OPTIMISTIC IN 2007 THAN IN 2006?

This is the maiden voyage of the Eng Garcia Group's Real Estate Blog.

In the early 1990s, I felt DC was very undervalued. Having grown up in Manhattan, a very expensive market where even the wealthiest buyers must accept difficult trade-offs, the DC area immediately struck me as a bargain, with trade offs that were relatively good and getting better by the day, it seemed to me.

15 years, 3 children, 2 careers and many houses later, I think life in Washington just gets better and better. Since I moved here in the early 1990s, cultural life in DC has improved vastly: the job market is much more diversified, the creative class has clearly started to move back to the city center, the arts and music scenes are getting more interesting, there is reason for hope that the school system - which has improved even in DC - will accelerate its rate of improvement, many neighborhoods with terrific architecture are being revitalized, and the job market is just about as good as any.

But it has also become a much more expensive place to live. The cost of living has risen...and housing prices certainly have risen...

Still, many folks believe DC remains a good place to live and, to the extent that 2006 slowed the rate of housing price appreciation (if it did not outright stop such appreciation), in 2007, we seem to have a more balanced market. As a Realtor, 2006 was a difficult year. We did a lot of business...but, especially on the listing side, we had to work a lot harder. Still, I am glad for that experience.

After the run up in values that we witnessed from the late 1990s through 2005, the market was clearly unbalanced and its meteoric price appreciation was unsustainable. Finally, 2006 introduced balance to the DC, Maryland and Virginia real estate market. By early 2006, buyers were able to actually demand and obtain traditional contractual concessions from sellers, such as contingencies around appraisal, a reasonable amount of time to obtain final lender approval, and important language concerning home inspection. By late 2006, throughout the metro DC area, buyers willing and able to enter the market were becoming increasingly aggressive, homes were taking significantly longer to sell on average and the so-called seller's market was clearly behind us. Some buyers refused to enter the market, preferring instead to take a wait and see approach. Inventory was increasing steadily and it appeared that the pendulum had swung over to the buyer's side.

This spring, however, the pendulum may be finding its way closer to the middle. Anecdotal evidence concerning sales activity in the DC area real estate market in early 2007 reflects a market that is more balanced. Many consumers seem to feel that by early 2007 we had already arrived at or near the bottom of the market for segments that had experienced a slight downturn in 2006, such as certain geographical areas (like parts of Northern Virginia) or types of housing (like condos). Currently, inventory appears to be declining, rates are still relatively low by historic standards, and buyers seem to be less concerned with "timing" the market.

In Washington DC, in particular, I am hearing from my colleagues that the spring market looks like it will be very active. And this is what I am witnessing in my business too. Well-priced properties are attracting multiple bids and buyers have their game faces on, particularly in highly desirable communities with limited supply, such as Chevy Chase, American University Park (AU Park), Glover Park, Kalorama, close-in Bethesda, Arlington and other such places.

In many areas within the DC, Maryland and Virginia real estate markets, Sellers should probably feel a little more optimistic in 2007 than they would have in 2006. Still, this is not 2004 or 2005, so there is hope for buyers too. Rates remain relatively low and in most communities within the metro DC real estate market, inventory is higher now than it was in 2004 and 2005, so there are actually properties out there to be purchased and enough time to think it through before feeling pressured to pounce for fear you will never encounter another good one.

As the year progresses, I will be looking at data concerning the 2006 and early 2007 real estate market in Washington DC, Maryland and Virginia. Meanwhile, if there is a particular issue that you'd like to explore, whether on this blog or in another setting, please email me at This e-mail address is being protected from spambots, you need JavaScript enabled to view it or call me at 202-253-6177.

Cheers,

Carlos Garcia, Esq.
Realtor DC, MD & VA
Eng Garcia Group
at Keller Williams Capital Properties
202.253.6177 Mobile 1
202.253.5152 Mobile 2
202.403.3380 eFax

Investment Minded. Design Conscious.

MORE INFO BELOW ON THE ENG GARCIA REAL ESTATE GROUP:

The Eng-Garcia Group

Multi-Talented, Community-Oriented
The Eng-Garcia Group is a full-service real estate consulting and sales team for clients buying and selling properties in the District of Columbia, Maryland and Virginia.

Carlos Garcia and Lucinda Eng-Garcia, principals of the Eng-Garcia Group, have worked in the DC real estate market for over ten years and are licensed to sell in DC, MD and VA. Through investments and management of their own properties, Carlos and Lucinda possess a thorough knowledge of the local real estate market, its trends, and legal matters.

A practicing attorney since 1994, Carlos moved to DC after graduating from Boston College Law School and today enjoys an extensive network of ties to communities in the Metro DC area through his professional work and numerous civic activities. He is co-owner and director, with other top performing agents, of Keller Williams Capital Properties, DC’s first KW office which he helped launch in 2005.

A Design graduate from Pratt Institute in New York City, Lucinda is a licensed interior designer and has worked on commercial and residential building and renovation projects since 1988. She provides complementary one-on-one design consultations to real estate buyers and sellers, helping to assess, renovate, stage, and market their properties. These consultations are a key component of the full-service concept and are available at no additional cost.

Why We Are Different
Resourceful, Value-Added Work Ethic

In today’s competitive marketplace, everyone must work hard to deliver value to their clients. The 4^th largest real estate brokerage in the U.S., Keller Williams is known for its commitment to excellence and to community building. Under the KW umbrella, The Eng-Garcia Group offers a customized, multi-faceted approach to leverage many resources for our clients:

• Superior client support and customized full-service offerings
• Team Concept – a full range of legal, financial, design, and marketing skills
• Exceptional ability to connect with people from all walks of life and understand their particular needs and expectations
• Careful scrutiny and analysis of local real estate trends and forecasts
• Extensive knowledge of the communities served, their assets and demographics
• Aggressive client advocacy and negotiating strategies delivered in a diplomatic style
• Excellent – frank and consistent – client communication practices
• Unique passion for connecting clients with investment-minded and design-conscious real estate opportunities
• Experience of 25+ years in real estate, 20+ in interior design, 12+ years in law
• National network of Keller Williams real estate professionals for relocation services and client referrals

We Work For You
Consultative Approach

Whether buying, selling or leasing a property, you are facing a momentous decision. This major decision cannot be rushed and must be informed by honest, intelligent, and timely advice from experts. The Eng-Garcia Group offers integrated, customized consultation on every aspect of your decision through a team of experienced and dedicated professionals on a broad spectrum of real estate transactions.

Our motto: “Investment Minded, Design Conscious” highlights two key components in every good real estate decision, whether you’re buying or selling. We help our clients make decisions that are economically smart and sound, while addressing their functional and aesthetic requirements. Balancing these two objectives is what our team does best.

Our team of specialists is ready to assist you with a strong multi-disciplinary background in real estate investments, sales, interior design, marketing, and law.