DC Condos/Coops:
September saw a leveling off of prices across the city for condos and coops and a 5.1% increase in contracts in comparison to Sept 2008.  A 12.6% decrease in inventory means the competition for condos and coops is getting tighter across the city.  Zip codes 20001-20016 are moving quickly and inventory that is well priced is commanding multiple offers and in some cases escalation.  We are still challenged by lenders who aren’t getting documents to the table on time and a very large majority of contracts are FHA. 

It is a tale of two cities in DC however, as many of the condos in 20017, 20018, 20019, 20020 zip codes continue to see a dramatic decrease in price of nearly 30% from this time last year and a decrease in contracts of 10%. There is almost no owner occupant market in those zip codes right now and so the majority of offers we see are from investors.  Complicating matters are bankrupt condo associations with high foreclosure rates making it nearly impossible to finance many condos in those zip codes.  This pushes us back into the cash market where investors are buying at $.50 on the dollar.  

DC condos/coops: http://gcaar.com/uploadedFiles/PDF/ToolKit/Research/Home_Sales_Statistics/DC_Condo_Coop/dccc0909.pdf

DC Houses:
Inventory for DC houses is down 18.5% in comparison to this time last year, and contracts are up 20%.  The average price is down nearly $100,000 and seems to have reached a level that is peaking the buyer’s interest.  Again, it is a tale of two cities however as houses in 20017-20020 zip codes aren’t moving much at all.  Prices continue to fall dramatically in those zip codes.  If however the listing is in 20001-20016 then multiple offers will likely ensue.
 
DC houses: http://gcaar.com/uploadedFiles/PDF/ToolKit/Research/Home_Sales_Statistics/DC_Single_Family/dcsf0909.pdf

There is some indication that the fall market might be setting in.  Traditionally activity begins to slow as we move into November and our “on the ground” reports indicate the last couple weeks are much slower than the previous several.

Keep an eye on interest rates as we move into the winter.  If they remain around 5% the market will likely rebound into next year, even if the tax credit is not extended.

For more details or analysis in your area, call me, I’d be happy to look at your individual situation. 

Late last year I was quoted in a Washington Post article about the need for buyers to carefully read the condo association documents before closing:

Read Them or Weep: Condo Association Documents Give Buyers a Glimpse of the Future

Life can be hectic when you’re moving. And after finding your dream condo the last thing you probably want to do is read through a hundred or more pages of fine print. But buyers and their agents need to make sure that the condo’s rules don’t conflict with the buyer’s future plans (like getting a pet or renting out the condo).

One weekend this spring I was surprised to see that The Cavendish (a condo building at 1200 Arlington Ridge Road, Arlington, VA) has outlawed the use of open house signs.

Open houses are an important part of the home-sale process and with no signage it becomes impossible to direct potential buyers to the unit. This speaks to an interesting movement by condo associations to restrict—or outright prohibit—the use of for sale and open-house signs on the property grounds.

The argument is that open houses are a security risk to the building and that signs clutter the grounds. And supposedly these factors depress the values of the condos.

While I agree that large for sale signs constantly in and out of the front yard of condo buildings can be tacky, banning the use of open house signs does not help the owners of units in the building. These restrictions hinder the agents’ ability of the agent to do his or her job, which in turn can lead to lower sale prices—for all owners