Re: real estate forecast in washington DC area - Posted by Todd B (Va)
Posted by Todd B (Va) on August 20, 2003 at 13:19:59:
My forecast,overall, is prices stablizing(a modest increase or decrease) for the next 2 or 3 years, and then growing 5% or so per year after that.
Here are some of the factors I considered.
Continued Population growth
Perceived as very good long term investment.
Strong local economy, which will get better as economy improves.
Interest rates go up, decreasing everyones buying power 20% or more.
Interest rates go up,making payments higher relative to rents, making a poor cashflow even worse.
Loss of perception of real estate as good short term investment, with no appreciation expected.
Flow of money out of real estate, and into stock market, as Real estate weakens and the stock market strengthens.
Time on market will increase, making buyers less motivated, and sellers more motivated.
This is just an opinion, and I could be way off, for a variety of reasons.
Todd B (Va)