Just wanted to give you the inside track on the effect on our local housing due to the new administration. Some of you may remember that in January, I shared a prediction that some areas of Washington, D.C. would benefit greatly from the influx of young professionals coming to work for President Obama’s team. It had been reported that the “best and the brightest” would turn from finance jobs in New York and make Washington, D.C. their homes as they joined the junior ranks of the new administration. Local residents and real estate agents braced for what was sure to be a sharp increase in the sales of condos in the areas that most appeal to this segment of the population.
But it didn’t happen.
If what we expected in Washington, D.C. was an immediate impact — i.e., quick buying decisions — from these new transplants, it just didn’t happen. January and February sales were very slow, and prices continued to decline each month. Beginning in March, we have seen an increase in the number of sales, but prices are still on a downward trend. Washington, D.C. is also facing an increased volume of foreclosed properties and some suggest that this phenomenon is nowhere near its end. Banks may even be holding back on listing foreclosed properties, fearing that this market will only yield rock bottom prices. So, when the market does begin to show slight improvement, there is some expectation that the inventory could increase due to the release of these foreclosed homes.
So has the Obama Administration had an impact on the sale of housing in the Washington, D.C. area? Continue reading this post