DC Real Estate Market Update. Prices up, Inventory down.

The Spring Market is here!  The DC real estate market got a very early start this year due to historically low interest rates and very low inventory.   According to RBI  :

1. The median Sales price for Washington DC is up by 8.5% over last year.
2. The inventory of homes for sale down by 38% year of year.

Buyers report that:

1. "There is nothing on the market". Well, not really nothing, but the inventory is very, very low.  In fact we are at about two-thirds the inventory of houses as compared to last year.
2. "The competition is fierce". With inventory being low, there are lots of buyers out there all competing for the same house. 

Real Estate Agents report that:
"Only two types of houses are selling right now."

1)  Complete shells, in other words, properties that need lots of work. It seems today's buyers either want it all done already or they will do it themselves. Renovated your house 10 years ago? Probably needs a refresh.
2)  Fully renovated and absolutely perfect houses.

Multiple offer situations are common, pre-inspections are the norm, and there are lots of non-contingent cash offers.

Action plan:
Sellers:

1. Get your house in order!  Clean, paint, de-clutter, organize and STAGE.  Consider hiring an inspector to inspect your house and then FIX everything s/he finds. 
2. Get a reality check- while this is a very strong sellers market, buyers are picky.  Your house has to shine!
3. Hire a professional, experienced, and local agent. 

Buyers:

1. Get your finances in order.  Get a loan pre-approval and know what price point you should be looking at.
2. Get a reality check- consider buying that slightly less than perfect house and earning that sweat equity.
3. Hire a professional, experienced and local buyer agent.  In most cases in DC, the comission is paid by the seller. A professional buyer agent will know the market, be atuned to the price movements, and will even know of homes that are not yet on the market.  Give yourself the insider advantage!  Hire a Buyer agent.
4. Consider doing a pre-inspection so you can submit an informed As-Is offer.
5. Be flexible! Find out what the seller considers a good offer.  It's all about the details.  Sure, the offer price has to be competitive, but the smaller details like closing date, amount of earnest money deposit, or perhaps even a rent back can make your offer much more competitive.

Washington DC is awesome.  Live Here.