B
uying a House in DC: Navigating the Current Market

    We're halfway through one of the most tumultuous real estate years in DC since Covid. Despite the headlines and rising mortgage rates, owning property remains a smart long-term move. To understand why, let's look at my own experience with buying and selling homes.

    I made a costly mistake by selling a second home I bought during the 2008 market crash. It took eight years for its value to increase significantly, but then it doubled in just five years. This taught me two valuable lessons: first, that infrastructure is crucial when making real estate investments; and second, that buying in a down-market or at unpredictable times can be a wise decision.

    Currently, the DC market is patchy, with some areas experiencing multiple offers while others sit unsold. Inventory remains tight in Northern Virginia and Maryland, particularly for move-in ready homes in desirable neighborhoods. Buyers are cautious due to rising rates, but this creates opportunities for those who know where to look.

    Inside DC, there's a growing opportunity for buyers. Neighborhoods like AU Park (Zip Code 20016), Cleveland Park, and Palisade have seen price drops, while higher-end areas like Kalorama and Forest Hills are experiencing significant increases. Georgetown, Spring Valley, and Wesley Heights have also seen notable gains.

    In Maryland, Bethesda is another area where opportunities exist. While some homes are sitting on the market due to overpricing or summer slowdowns, others are selling quickly. Walt Whitman High School's reputation as a premier high school drives demand for homes in the area, but currently, there are more affordable options available.

    Northern Virginia also offers chances for buyers to find deals. Arlington and Fairfax County have seen median Days-on-Market averages of 7-19 days for houses closed in the last three months, but currently, some homes are sitting on the market longer than usual.

    The key is to understand that buying a home in a fearful market can be a smart move, especially when investing in areas with a history of increasing property values. Down-markets are rare, and we're currently experiencing one. To succeed, plan to hold onto your investment for the long haul and be prepared to act when others hesitate.

    Real estate is about where a neighborhood or market is headed, not its current state. By having faith and courage, you can win by buying while others wait. Whether upgrading, relocating, or buying your first home, real estate remains one of the most powerful tools for growing generational wealth – regardless of short-term rate fluctuations.