T
he Washington DC real estate market is unlike any other I've seen in my 20 years living here. Some properties have multiple offers, while others linger on the market for months. To make wise decisions in this environment, it's essential to understand what's happening and how you can capitalize on opportunities.
I recall working with homebuilders who said "the pie cools from the outside-in." This meant that when markets slow down, the suburbs feel the impact first, followed by areas closer to employment centers. However, during the pandemic, people sought larger homes with yards, home offices, and gyms, shifting demand back to the middle of the market.
Today, we're seeing a unique situation where opportunities abound in DC. One-bedroom condos, once priced in the $500,000s, can now be snapped up for around $400,000. My client recently purchased a one-bedroom condo in Mount Vernon Square with parking and a rooftop pool for $450,000 – an incredible deal.
If you're not looking to invest, there are still great deals to be found. I had a client buy a condo in Northeast that had been on the market for months, getting a great price and help with closing costs. This is how you build wealth.
When searching for opportunities, focus on location, price, and ability to negotiate. DC will always have a strong real estate market due to its government presence. Interest rates may come down again, but by then prices will likely rise. Buying now with higher interest rates might be painful, but it's better than waiting for lower rates.
Crime is also a concern in DC, but it's decreasing. Homicides are down 34% compared to last year, and robbery has decreased by almost 40%. However, some areas still feel unsafe, and parents like me have become more vigilant about our surroundings.
Schools in DC can be a challenge, especially if you're not comfortable with the in-boundary school or don't want to deal with the lottery system. Private schools may be a better option for families who value education and safety.
Lastly, dealing with DC's government agencies can be frustrating, from fingerprinting requirements to bureaucratic red tape. While some areas of the city have gentrified, others still feel like they're stuck in the past. As someone who's lived in DC for over 20 years, I've seen the good and the bad – and while I still love this city, I understand why people are leaving.
