123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Real-Estate-and-Foreclosure >> View Article

3rd Quarter Housing Data Shows Now Is A Good Time To Fix And Flip In Washington, D.c.

By Author: Katia Potapov
Total Articles: 7

The recent presidential election generated tremendous interest in the Washington D.C. area real estate market. Figures from the third quarter indicate conditions that favor investment in new and redeveloped property, including:

• Low inventory: Demand for housing outstripped supply in Q3. Strong demand in the first half of 2016 depleted available inventory, dipping to the lowest level since 2013 Q3. There is a slim 2.8-month supply of homes in the D.C. area, compared to a supply of 6 months when demand and supply are balanced. The lack of inventory cut the number of sales and the rise in prices. Nonetheless, year-over-year third quarter sales volume increased 4.1 percent in 2016. Best price growth occurred in the Urban Core and the Outer Suburbs of the District.

• Faster sales: On average, it took only 47 days for homes in the Washington D.C. area to sell during Q3 of 2016, down four days from the previous Q3 and well below the 10-year average of 66 days. The Outer Suburbs saw the steepest drop (six days) in days on market, which was most likely due to low fuel prices, low interest rates, and relatively more inventory compared to closer-in neighborhoods.

• Seller reluctance: The demand for new and redeveloped units is extremely high, in part due to the reluctance of homeowners to sell. Many owners are simply unable or unwilling to sell if their home hasn’t appreciated enough for them to profit.

An Optimal Time to Fix and Flip

These factors point to a golden, if perhaps short-lived, opportunity to invest in housing throughout the Washington, D.C. region. Demand far outstrips supply, inventory remains low and houses sell quickly. Renovation of local properties would help increase the housing supply and increase prices. And the resale of those properties for a healthy profit looks promising. The new administration will be looking to stimulate growth through tax cuts, reduced regulation and job creation, conditions that naturally favor higher housing prices.

The window of opportunity is also defined by the relatively low costs for labor and materials that currently apply. The fiscal stimulus promised by the new administration, which is targeting up to 4 percent annual growth in GNP, could stoke inflationary pressures, meaning a year from now it may be much more expensive to fix and flip residential property than it is today. In other words, the cost of capital may be going up.

Walnut Street have been deeply involved in the local building and development communities for more than two decades. Contact us for information about how we can help you quickly fund your renovation project.

Total Views: 70Word Count: 447See All articles From Author

Real Estate and Foreclosure Articles

1. Office Rental Space – Tips To Find The Right One
Author: Office Rental Space

2. Are Online Real Estate Portals Of Good Help?
Author: Rent4free Properties India Private Limited

3. Make Your Dream Come True- Own A Property That You Desire At Costa Blanca
Author: ImmoAbroad

4. North Barrington Homes For Sale Real Estate Market Report 2017
Author: John Herman

5. Belongings Control Perth
Author: John Adams

6. Try These Interesting Ideas Of Decorating Your House With Family Pictures
Author: Sharangee Dutta

7. Perth Belongings Management
Author: John Adams

8. Godrej Air
Author: godrej

9. Godrejo Air
Author: godrej

10. Gwadar – The Next Shenzhen
Author: China Pak Hills

11. Tata New Haven Bangalore
Author: tata

12. Property Manipulate Darwin
Author: John Adams

13. Selling A House By Owner In California
Author: Mason Dexter

14. Perth Assets Control
Author: John Adams

15. Belongings Control Darwin
Author: John Adams

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: