3Rd Quarter Housing Data Shows at This specific point can be a Great Time to Fix along with also Flip in Washington DC
- April 25, 2017
- Posted by: marlenedubois
- Category: Home Health Aide Training
The recent presidential election generated tremendous interest from the Washington D.C. area real estate market. Figures via the third quarter indicate conditions that will favor investment in fresh along with also redeveloped property, including:
· Low inventory: Demand for housing outstripped supply in Q3. Strong demand from the first half of 2016 depleted available inventory, dipping to the lowest level since 2013 Q3. There can be a slim 2.8-month supply of homes from the D.C. area, compared to a supply of 6 months when demand along with also supply are balanced. The lack of inventory cut the number of sales along with also the rise in prices. Nonetheless, year-over-year third quarter sales volume increased 4.1 percent in 2016. Best cost growth occurred from the Urban Core along with also the Outer Suburbs of the District.
· Faster sales: On average, This specific took only 47 days for homes from the Washington D.C. area to sell during Q3 of 2016, down four days via the previous Q3 along with also 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, along with also relatively more inventory compared to closer-in neighborhoods.
· Seller reluctance: The demand for fresh along with also redeveloped units can be 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 along with also 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 along with also houses sell quickly. Renovation of local properties could help increase the housing supply along with also increase prices. along with also the resale of those properties for a healthy profit looks promising. The fresh administration will be looking to stimulate growth through tax cuts, reduced regulation along with also job creation, conditions that will naturally favor higher housing prices.
The window of opportunity can be also defined by the relatively low costs for labor along with also materials that will currently apply. The fiscal stimulus promised by the fresh administration, which can be targeting up to 4 percent annual growth in GNP, could stoke inflationary pressures, meaning a year via at This specific point This specific may be much more expensive to fix along with also flip residential property than This specific can be today. In additional words, the cost of capital may be going up.