According to the Examiner today, on page 5, the local market has held steady for the month. At least so far. According to David Francis and Melissa Frederick, the DC and Baltimore regions have displayed “resiliency” against the turmoil of the rest of the country. NAR (National Association of Realtors) even reported a 3% increase in home pricing in Baltimore and Northern Virginia. In an article I wrote on August 10th, Average DC Home Price Up 4% over July ’06, further data shows the District is up 4% over a 12 month period from July ’06-July ’07.
Lawrence Yun, chief economist for NAR told David & Melissa that “the inner counties [are] doing very well,” buoyed by strong job growth. Yun went on to say that the outer counties are picking up and will soon be following suit.
At this point, at least through the end of the year, despite market stability, it seems to be an uphill battle. With the media exposure of a market downturn across the nation in addition to the seasonal trends of fall & winter, we may not directly understand our stability until next spring, which both myself and one of my mortgage brokers from Countrywide, Leila Search, are predicting will peak rather early in the season.
I can’t express how grateful I am for having the market stability of the area. Fortunately for everyone DC has provided a “safe haven” for us property owners despite what the rest of the country is undergoing in these undoubtedly difficult times in our industry.
Melissa & Davids article can be found here.
This morning, a joint venture between a locally based investment group, JBG Companies, and a California based company, MacFarlane Partners was announced. The announcement forms the newest DC based investment company Urban JBG LLC, an alliance of two development superpowers into what could currently be the most stable real estate market in the country. According to the Examiner.com, the partnership has been designed to develop or redevelop 93 sites in the area over the next five years, the largest investment of either company to date. Of the 93 sites, it is estimated that nearly 60% are at or near major mass transit locations including the DC Metro or traffic thoroughfares, only increasing the opportunity for expansion and success for both companies.
Whats more interesting, Victor MacFarlane is the principle investor for DC United, Washington DC’s soccer team and the major investor associated with DC’s newest RFEI, Poplar Point in Anacostia, that 130 acre site MacFarlane has been trying to get his hands on with his $150 Million, $50 Million short of the Cities required $200 Million bid for the site.
MacFarlane currently has relationships with one of the most well known developer based real estate companies, Monument Realty, who I would expect will be associated with their release of Residential, Commercial, Retail and Warehousing in their expected development of the area.