4 Reasons Residential Real Estate Shows No Signs of Slowing Down
Will residential real estate sputter this fall? In the Washington, DC; Virginia; and Maryland markets, there’s no evidence of a slowdown any time soon. Here are four key reasons real estate looks to stay hot, even when the temperatures cool off.
- Inventory Can’t Meet the Current Demand
Ray Gernhart, a Realtor with nearly four decades of experience in the Washington, DC; Virginia; and Maryland markets, is uncategorical about his prediction for real estate in the autumn.“Do I personally see real estate falling in the fall? No.”The main reason comes down to available properties in the geographic area.
“There’s just no inventory right now. For every house that comes on the market, there are multiple, multiple buyers,” says Ray. “If a house comes on the market and it gets twelve offers, that leaves eleven people still looking for homes. It’s going to take months and months of inventory for all these people to start putting roofs over their heads.”
If you’re in the market for a home right now and are coming up against this problem, download this list of exclusive off-market properties. These homes are available for purchase, but you won’t find them on any publicly listed site. (Not Zillow, Trulia, Redfin, or anywhere else.) In a highly competitive environment, off-market properties are the best way to beat the crowds, avoid the bidding wars, and minimize the stress. With no signs of a market slowdown, expect off-marketing listings to increasingly become the way real estate is done.
Thinking about selling? The market is definitely in your favor right now.
- Interest Rates Are Incredibly Low
Whether you’re actively looking to buy or you’ve just seen the news in the last few months, you know interest rates are historically low right now.“Interest rates are an incredible driver for real estate,” says Ray, “and, for now, they’re projected to stay low.”Low interest rates were just one reason real estate stayed strong this summer, and if those rates stay low, they will have the same impact in the fall.
- COVID Has Changed the Way We View Our Homes
“With COVID, more and more people are looking to nest,” says Ray. “That little one-bedroom in downtown DC was great when people were running to work and meeting with friends afterward for drinks. Lots of people were just using their condos as places to sleep. Now, it’s different. They want gyms, backyards where they can grill, home offices.”This shift in people’s real estate mind-set won’t be quick to change.“In this climate, people want to make sure they have a compound, not an apartment,” says Ray. “That’s going to be a driver for quite some time.”
- Commercial Real Estate Is a Different Animal Than Residential Real Estate
With so many people working from home now, a large percentage of that workforce is going to continue working remotely. With that shift, commercial real estate today will be the most impacted in the short term.“Say you’re renting a fifteen thousand-square-foot space on K Street for your company and your lease comes up. Over the last few months, you’ve seen that your people are just as productive at home as they are in an office. So, why do you need all that space? Maybe all you actually need is five thousand square feet for a few conference rooms,” explains Ray. “This is happening to lots of companies, and commercial real estate is going to take a big hit. Residential real estate, though, will continue to climb for the foreseeable future.”
If you’re looking to buy a home in this market, don’t get discouraged! Is it competitive? Yes. Is it impossible to close on a home? Of course not! The right Realtor can get you the inside track on off-market listings and knows how to craft an offer a seller is dying to pick.
Finding the right real estate agent is step number one. If you’re ready to start the home-buying journey, contact us today!
