Get Smart With City Chic is a bi-weekly column outlining real talk about what’s happening in the DC real estate market. Sponsored and written by Lindsay Dreyer, broker/owner of city chic real estate.
This guest post is by Sarah Brazell, DC/MD/VA real estate agent for City Chic Real Estate. Book a call with Sarah!
Many have asked, “How’s the real estate market?” It has been sent.
Admittedly, the housing market isn’t the same as it was last year…but that’s not a bad thing!
The ultra-low interest rates of the last decade have allowed people to borrow money cheaply. These 2% and 3% interest rates have flooded the market with large numbers of buyers who have entered an absolute bloodbath to purchase a home. These buyers tried to be more competitive by pushing up home prices. (It’s a studio in Foggy Bottom. For real Worth $400,000?) In addition to the skyrocketing prices, and perhaps even more dangerously, these buyers were abandoning all contingencies. Without the contingency of home inspections and appraisals, how comfortable would you have been buying your home?
The frenzy subsided as interest rates began to rise. Cheap money has dried up and stock portfolios have taken a hit. As a result, home prices began to fall, homes stayed on the market longer, and bidding wars were a thing of the past. Ladies and gentlemen, it’s finally a buyer’s market!
I don’t know about you…but being a buyer sounds a lot better than it used to!
And the Washington, DC housing market remains an excellent long-term investment.
Our housing market is particularly unique, unlike most cities in the United States. Because most of the jobs here come from the federal government, a recession-tolerant industry. House prices can fluctuate from year to year but remain stable thanks to the local economy. In fact, it’s so stable that it might be the only one I can buy a house on clearance (Where’s the MAXXinistas??)
I think it’s a great time to buy, but you may not be ready or agree with me. I’m not trying to push you Life is all about timing. As with love, it’s important not to rush until you can appreciate it. Think of homeownership like a long-term relationship. When the new flavors of the week come, you can’t leave.
Equities and NFTs are passionate, raucous lovers of highs and lows, but homeownership is the cold (dare I say boring?) guy who has been around forever and is going nowhere. Stocks and he’s NFT, he’s one for a little fun. If you’re lucky, your stock may stay with you for the long term!Or, you can date the stock for a few months and sell it a few months later and he’ll get a 20% profit. , can also finish unscathed.
If the game is over and you appreciate a safe, low-disruption relationship, consider home ownership. Homeownership is a long-term play, and if you can commit, you’ll see how good it can be for you. And believe me, owning a home is really good for you.
You get perks like tax deductions, an equity line of credit, principal repayment, rental income and, if you’re lucky, living in a really nice place.
I’m no tax accountant or financial planner, but I do know that the secret to being able to retire within the next 20-30 years is having a well-balanced portfolio with significant returns. That portfolio should have stocks, bonds, and properties. The stock market has been strong over the past few years, but how is your overall portfolio doing? Are all your eggs in your 401k basket? By opening your statement, knowing there are other assets making money makes it a bit less painful.
I bought an investment property this year. My rental home has a tenant covering my mortgage (and a little more). Plus, my mortgage is paid off! Over the next 15 years, we plan to fully pay off the assets purchased in the sale in 2022. Free cash flow after retirement!
Warren Buffett famously said: “Be greedy when others are afraid.” Don’t be afraid for your future just because you weren’t taught how to invest in school. For too long, we millennials have been treated badly. It’s time to join the game and make your fortune!
TL;DR: This is the time to buy a home on clearance. Invest in your future. You can refinance the interest later.
City Chic Real Estate is an independent, woman-owned real estate firm that specializes in helping first-time buyers and sellers on the DMV. Book a pressure-free intro call with our team municipalities.