3Rd Quarter Housing Data Shows right now will be a not bad Time to Fix in addition to also Flip in Washington DC
- July 1, 2017
- Posted by: marlenedubois
- Category: CPR Training
The recent presidential election generated tremendous interest from the Washington D.C. area real estate market. Figures through the third quarter indicate conditions in which favor investment in fresh in addition to 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 will be a slim 2.8-month supply of homes from the D.C. area, compared to a supply of 6 months when demand in addition to also supply are balanced. The lack of inventory cut the number of sales in addition to 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 in addition to also the Outer Suburbs of the District.
· Faster sales: On average, the idea took only 47 days for homes from the Washington D.C. area to sell during Q3 of 2016, down four days through the previous Q3 in addition to 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, in addition to also relatively more inventory compared to closer-in neighborhoods.
· Seller reluctance: The demand for fresh in addition to also redeveloped units will 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 in addition to 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 in addition to also houses sell quickly. Renovation of local properties would likely help increase the housing supply in addition to also increase prices. in addition to 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 in addition to also job creation, conditions in which naturally favor higher housing prices.
The window of opportunity will be also defined by the relatively low costs for labor in addition to also materials in which currently apply. The fiscal stimulus promised by the fresh administration, which will be targeting up to 4 percent annual growth in GNP, could stoke inflationary pressures, meaning a year through right now the idea may be much more expensive to fix in addition to also flip residential property than the idea will be today. In additional words, the cost of capital may be going up.