Washington D.C. Real Estate News & Market Trends

Did You Know?

10 mega-donors gave a total of nearly $15 billion in donations in 2021, accounting for about 5% of overall individual giving across the U.S....a good example of the rich contributing perhaps? (PENTA)

Did You Know?

If $2.2 million is the new net worth for you to be considered 'wealthy', to achieve this you should invest $12,861/month for 10 years to reach $2.2 million, $4,335/month for 20 years, $1,881/month for 30 years, $890 each month for 40 years and $437/month for 50 years.  (CNBC)

Did You Know?

The total number of loans now in forbearance decreased by 9 basis points from 0.94% of servicers’ portfolio volume in the prior month to 0.85% as of May 31, 2022. 425,000 homeowners are in forbearance plans. (MBA)

Did You Know?

US home-builder Lennar home sales revenues increase 33% to $8 billion, primarily due to a 14% increase in the number of home deliveries ...and a 17% increase in the average sales price.....when inflation is allegedly under 10%? Why? It's a free market. Regardless of higher costs, free markets price where the demand is. Lennar expects sales to slow in the next 6 months due to sharply higher interest rates.....exactly what the Fed's goal is.

Did You Know?

Amazon may run out of prospective workers for its US warehouses by the year 2024, according to a leaked internal memo....look out for areas with Amazon entities to grow as they offer jobs. Amazon operates 1,137 fulfillment centers of various types in the U.S., with announced plans to open 331 more, mostly in close proximity to larger cities. California, Texas, Illinois, Florida, Pennsylvania, Michigan, Ohio, New Jersey, Tennessee and North Carolina already each have at least 11 million square feet of Amazon Warehouse space....  Amazon already uses about 350,000 robots.....which reduces the need for space for parking, bathrooms, lunch rooms.....

Did You Know?

Construction started on new U.S. homes fell 14.4% in May,  (Commerce Department). The annual rate of total housing starts fell to 1.55 million last month from a revised 1.81 million in April. The drop is the biggest decline since April 2021. Housing starts are now at the lowest level since April 2020. The construction pace for single-family homes fell 9.2% in May, while apartment starts fell 26.8%......not sure if cutting supply will help inflation.....but it could keep prices high. (MARKETWATCH)

Did You Know?

Many buyers who for the past months approached a listing almost certain they would have to bid over the asking price, may now not encounter as much competition (and/or a seller/agent with a less aggressive asking price)......combined, these two factors may offset what might have been a higher selling price to offset higher borrowing costs.  Remember, if a home price has risen 20% in the past year, a 10% price reduction erodes 12% of that 20% gain.

Did You Know?

The median sales price of a house sold in the U.S. was still at a record high of $428,700 in the first quarter of 2022, up from $313,000 in the first quarter of 2019 before the COVID-19 pandemic....an almost 37% increase over 3 years. Expect some of these extreme price jumps to scale back now as we have already started to see lots of price reductions, especially on asking prices that are irrationally exuberant. No-one should assume annual 10-20% price escalation lasts.

Did You Know?

Banks have different mortgage rates for different parts of the country.....in larger, more competitive areas, rates have to be more competitive. Banks are fully flush with cash right now...  Watch the 10-Year treasury mostly. (First Republic Bank)

Did You Know?

Existing home sales in the U.S. are expected to drop 6.7% by the end of this year, compared with 2021, according to some forecasts,  a major revision from its earlier forecast, when it saw a 6.6% rise over last year. The increase in borrowing costs since the beginning of the year and looming economic uncertainty means people aren’t in the same rush to buy. But even if home sales come in on par with the new projection, 2022 would mark the 2nd-highest tally since 2007, trailing only 2021. Inventory also is forecast to improve by 15%, up from the 0.3% predicted earlier this year. (Barrons)

Did You Know?

Total U.S. home equity increased almost 20% in the first quarter to $27.8 trillion, a record high, according to the Federal Reserve. Taking out equity from your home is more expensive now with higher interest rates. (WSJ)

Did You Know?

Rents are a lagging indicator in inflation numbers and are turning out to be an enormous driver of inflation. Both rents and healthcare costs are contributing to rising inflation that may not have fully registered yet.

6 Benefits of Investing in DC Real Estate

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Alt-tag: A hand holding money representing the benefits of investing in DC real estate. 

The choice to invest in real estate might be one of the most challenging financial decisions. This is particularly true if you're planning to relocate to a huge metropolitan location like Washington DC. This lovely giant often considered nothing more than a political landscape, has lately become one of the United States' most distinctive and up-and-coming cities. Because of this dramatic shift, those trying to buy or sell a home in this market are in for a treat. There are a lot of benefits of investing in DC real estate. Six of them are outlined here, and it's up to you to join the homeowners of this one-of-a-kind neighborhood.

1# Stability is one of the main benefits of investing in DC real estate

The first thing you want to look into when going into the real estate market is its stability. The capital city of the United States gives you just that. On average, sellers here sell their property for 99,7% of the asked price. This is why this is considered the best seller's market on the East Coast. The constant flow of people makes properties sell at listed prices or above constantly. And it's only getting more prosperous over the years! COVID-19 has helped the market a lot. More people have come to DC in search of happiness and peace. That means more renting and more return money and benefits for investors. 

2# Work market brings you profit

The work market here is extraordinarily broad, with many opportunities in a variety of fields, including:

• the hotel industry

• finance

• technology

• healthcare

Consequently, young college graduates interested in making a strong start in their careers and seasoned professionals alike consider this area to be excellent. So, homeowners are in a unique position to capitalize on this trend in a number of different ways. That includes the creation of satisfying home life and the development of a stable income for themselves. According to the experts in statetostatemove.com, it is certain that a person would experience enormous personal and financial benefits as a result of becoming a homeowner in this dynamic metropolis.

3# Diverse communities bring flexibility

Being the number one in offering job opportunities, Washington is the place that attracts a lot of people of different backgrounds. That means if you want to rent—there's always someone who will want what you have to offer. You can play with your creativity and be flexible. Make your property up to your taste. There will always be someone looking for just that! This alone is an excellent reason to take on the opportunity to go into DC's real estate market. 

Also, diversity is a good thing when you are moving to DC. Because of it, everyone feels welcome, and there's no cult of snobby residents. A lot of people have been moving from Texas to DC in the past few years. In order to have a safe transfer from Texas, a lot of them hire professional movers.

4# Great number of students means great benefits

While DC was once recognized as a haven for political hopefuls, that reputation has radically transformed in recent years. Ages 25 to 34 make up the majority of the population in this region. Altering elements such as the workforce, economic growth, and the willingness to invest significantly influence local economies. Economies are bolstered by young people, who make up a large portion of the workforce and spend their money buying houses in neighborhoods they feel secure and comfortable with.

Anyone thinking of investing in DC real estate or in the region should be aware of this. In the nation's capital, there is a thriving community of young professionals looking to start their own businesses and realize their dreams. As a result, they will be prepared to pay for the lifestyle they want. That has shown in increased property building over the years. Landlords and others who live in the region benefit from these activities whether or not they are directly affected.

5# Central location is widely convenient

The important thing that can drastically increase your home value is location. One of the most significant and leading East Coast cities is also a strategic position. It gives you easy access to a number of cultural and commercial hotspots, including New York City and Philadelphia. Amtrak also provides continuous service as well as speedier direct lines to assist customers in reaching where they need to go quickly. Travelers can go from the heart of Washington, DC, to Boston's Back Bay station in little over two hours on Amtrak's Acela trains.

Washington DC residents may also take advantage of the city's central location to visit some of the country's most magnificent natural areas. These include Vermont's ski slopes or Niagara Falls in Upstate New York. Those working in major organizations or those who often go to the Northeast for a few weekends away will find Washington's location excellent. That means that either you or some business person will widely benefit from Washington's sole geography. 

6# Tax advantages

Investing in real estate is a tax-deductible strategy. Property taxes, mortgage interest, management fees, insurance, continuing upkeep, repair expenditures, and the money you spend marketing your property to prospective tenants. These are all expenses you may deduct from your taxable income when you own an investment property. Selling your property for more than you bought it will result in a gain that will not be taxed as income when you sell the property. If you sell your property, you will have to pay income tax on the sale, not capital gains. You will pay even less in capital gains if you invest in "opportunity zones," which are communities in need of investment.

Bottom line

Whether you want to try out as a seller, renter, or you just want to invest in your future home, there are a lot of benefits to investing in DC real estate. This is a place for everyone, and taking advantage of that could pay off greatly. So, don't be afraid to take this step forward and invest in this wonderful neighborhood. 

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Did You Know?

Family offices managing vast fortunes for wealthy individuals have increased their allocation to private equity from about 15% in 2019 to 20% last year, the largest gain for any asset class. Many plan to keep putting more money into private companies over the next 5 years. (UBS)