If you’re reading this column, you probably pay attention to the local real estate market. You know that we’ve been in a buyer’s market for more than a year, meaning that buyers have gained leverage over sellers in negotiations.
That leverage recently has grown even more substantial because sales have continued to decline while inventory has risen. Home shoppers have about 50,000 homes from which to choose, compared to just 16,000 three years ago.
However, buyers may not always like what they find.
“The inventory is growing, and along with that comes a lot of junk — things that are in poor shape, aren’t updated,” says Andy Biggers, a Realtor in the McLean/Old Dominion office of Weichert, Realtors.
“But some homes in poor shape are listed for the same price as updated homes nearby,” Mr. Biggers says. “That weighs down on everyone who is trying to sell and pushes down prices. When there are 15 homes for sale in a neighborhood, clients want to see the cheapest ones first. A really nice home tends to get pushed down to the level of the others.”
One reason some less-than-perfect homes are coming on the market is the recent rise in foreclosures. As homeowners fall behind in their payments, they are less likely to keep up the physical condition of their homes. Homes that aren’t in top shape will not be competitive in today’s market, and their owners may need to decrease the price to find a buyer.
Still, home buyers should keep their expectations realistic about how much they can save in today’s slower market.
“Some buyers out there are looking for a deal because they saw some infomercial about foreclosures and short sales,” Mr. Biggers says. “It’s important to remember that everything in the media is based on averages, which are next to meaningless when dealing with individual properties. There are neighborhoods where prices are still going up and others where prices have gone down unbelievably. And there’s everything in between.”
Contact Chris Sicks by e-mail (csicks@gmail.com).
The statistics in this story reflect a metropolitan area that includes the Maryland counties of Montgomery, Prince George’s, Anne Arundel, Howard, Charles and Frederick; the Virginia counties of Arlington, Fairfax, Loudoun, Prince William, Spotsylvania and Stafford; the city of Alexandria; and the District.
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