Home prices in the Washington region are improving to the point where those who bought their homes in 2004 should be able to make a profit on the sale, according to a new report. Since the market low during March and April 2009, prices in the region have risen 15 percent, according to real estate valuation firm Clear Capital. The region includes Northern Virginia, much of Maryland and parts of West Virginia.
“Now prices are around 2004 prices,” said Alex Villacorta, senior statistician at Clear Capital. “So buyers who have been sitting on these properties for quite some time are probably happier and can make a profit now.”
Villacorta said Washington is one of the few markets where prices have steadily inched up since the low point, posting some gain each quarter. During the third quarter of this year, from July 1 through Sept. 30, the region was just one of two that posted an increase over the previous quarter’s prices.
| Region’s prices bucking trend | ||
| Third-quarter home sale prices | ||
| Quarterly Change | Yearly Change | |
| Washington | 1.5% | 7.5% |
| Nation | -5.8% | -2.7% |
| Source: Clear Capital | ||
Washington’s home prices increased by 1.5 percent during the third quarter; Honolulu’s increased by 2.4 percent. Compared with a year ago, Washington’s prices increased by 7.5 percent.
According to Real Estate Business Intelligence, the average home in the region sold for more than $335,000 in October. Clear Capital’s quarterly average for the region was not immediately available.
Nationally, quarter-over-quarter home prices fell by 5.8 percent and fell by 2.7 percent annually.
“Most markets have seen some volatility up and down primarily due to the tax credit, whereas D.C. has shown no decline over that time period,” Villacorta said.
That means that if the region’s prices continue at this rate of increase, 2005’s homebuyers could see returns on their investment beginning next year. But those who bought between 2005 and 2008 will have longer to wait, Villacorta said.
Nationally, home prices peaked in July 2006. They have fallen 37.4 percent since then.
But the report notes that real estate is jurisdictional, meaning what’s true for the region may not be true for areas within it. Some predict that 2011 could mark new lows for certain jurisdictions with higher foreclosure rates: Prince George’s and Prince William counties have traditionally had higher foreclosure rates than the rest of the region.
Also, the foreclosures expected to flood the market next year, because a national foreclosure investigation is stalling filings, could also be a “game changer” for prices, Villacorta said. But he added that banks may have learned their lesson and pace the release of foreclosed homes on the market to keep prices steady.
