All Of The Above Blog

The Realty Behind DC Realty

Investing in Washington, D.C. can raise many challenges special to that locale. Professional developers like Isaac Toussie recognize that, first of all, the property markets of our nation’s capital consists of some very interesting characteristics. Even though the city’s real estate environment continues to be harsh due to still-disappearing gains, gains made during pre-2008 boom-times, new developments are occurring that may indicate a turn-around.

Not everyone understands that home sales have fallen as credit’s dried up the way a pro like Isaac Toussie does, causing ripple effects like job insecurity and worse. In fact, suburban D.C. has even been through price drops of up to one hundred thousand dollars! But as is frequently the case in the world of business, there may be a silver lining in even this disaster. That’s because one man’s tragedy is another’s opportunity, to put it candidly. And so the glut of foreclosed properties has come to tripped off a buying spree in many places, particularly among the many first-time home buyers of Prince William County who finally found prices within their reach. It should also be noted that so-called “vulture investors” have swooped in as well to snap up distressed properties, which is generally considered to be a good reflection of the wider economic situation, as it is a strong sign of a certain confidence in the market, that market fundamentals remain solid. In fact, these two groups of buyers play a role not unlike that of canaries in a mine, signaling trends and shifts.

The second matter that has occupied many a thoughtful observer of late concerns the rate of mortgage delinquency, which has actually declined a little, according to a recent industry survey just completed. The rate at which mortgage payments have fallen behind has decreased slightly during the fourth quarter of 2009, which is surprising indeed considering that delinquency rates usually rise during the last three months of the year, on account of all heating expenses for winter and the holiday shopping season.

Surprised though market analysts may be, very few are puzzled because most take this development for nothing more than a statistical outlier, a coincidence. Most economists and other experts continue to believe that the situation remains extremely dangerous, as there are still record numbers of homeowners in financial straits, with the biggest predicament of all unresolved: that way too many have missed at least three payments, and these people are precisely the ones least helped by any relief program whatsoever, historically speaking; these are the very souls who will be going into foreclosure quite soon.

One more thing to know about D.C. property markets: the city was the nation’s murder capital for much of the 1990s, and still suffers from the effects of municipal mismanagement to this day. Of course, tony nabes like Georgetown exist, but for the most part D.C. is a place where real estate investors need to exercise due diligence when searching for opportunities. The city has been slowly recovering, with gentrification helping pull some pockets of poverty and despair up and out into the modern 21st Century economy, but it’s not a sure bet that current commitment levels shall last.