Premier Team - International Real Estate & Properties

2015 Real Estate Market in Washington DC

2015 Washington D.C. Real Estate Market

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What to Expect this Year in DC Real Estate

As we raise our champagne glasses and toast to a fruitful 2015, many real estate buyers, sellers, and investors alike wonder what the future of the Northern Virginia and Western Maryland real estate market holds. The Washington DC area draws international relocations in huge numbers. This is because commerce, government, technology and diplomats reside in the Nation’s Capitol to conduct business and make contacts. The real estate market is stable in Washington, DC, and the quality of life enjoyed by it’s residents make it a mecca for international relocations.

Here are five predictions:

  • Home prices will continue to produce double digit gains. Even with concern over interest rates and inflation, Washington D.C. housing values continue to show amazing growth. local economists are even so bold to predict that D.C. and Northern Virginia home values will reach their 2005 peaks in 2015. A brave claim to be certain, one that only time will prove.
  • Federal monetary policies will hold mortgage rates steady for 2015. After much speculation, Fed Chair, Janet Yellen, announced in late December that the Federal Reserve will be holding interest rates steady for most, if not all, of 2015. Those home buyers in Virginia and Maryland looking to finance their next home can take a deep breath and plan accordingly.
  • Housing inventory will increase. As real estate values increase, homeowners are removing their scuba gear and getting out from under water. The ability to list one’s home at a profitable price and increased demand for new construction will give housing inventory a boost it needs in the Washington D.C. region.
  • First-time home purchases will increase. Since 2009, first-time home buyers couldn’t catch a break and therefore exited the Washington D.C. residential real estate market. From tighter credit regulations to higher down payment requirements, buying your first home was often unattainable. New down payment programs through Freddie Mac and Fannie Mae bring new opportunities for first timers to make their first purchase.
  • Neighborhood reputation and convenience will be paramount. While trendy neighborhoods come and go, certain home buying preferences remain true. Purchasing real estate in reputable areas such as Loudoun County, known for its equestrian lifestyle, will continue to outperform lesser known locations. When considering a more urban locale, resale will always remain strong in close proximity of public transit and respectable school systems.

There is no denying that a crystal ball was not consulted to write this post, but 2015 brings an undeniable buzz of optimism with regard to Maryland and Virginia real estate potential. Real estate investors must keep in mind that, historically speaking, annual housing returns have produced 6-7%. Thus, after seven years of real estate volatility, data suggests a smoother ride to come.

Contact Gene Mock, Associate Broker, Premier Team, Keller Williams Realty

703-342-8100 for more information, at no obligation.

Gene Mock, International Real Estate

2015 Washington DC Real Estate Market

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Real Estate Brings Chinese Investors to the U.S.

Real Estate Brings Chinese Investors to the US

Real estate has always been one of the best forms of investment – land exists no matter what the stock market might do. It’s a permanent form of investment that doesn’t rely on a company’s performance to back its value. Moreover, it’s an investment that can be appreciated by individuals from almost any culture. These are just a couple of the drivers fueling the influx of Chinese investors into the US real estate market.

Modern Office Buildings Downtown Rossyln, Virginia, VA

Unstable Home Market

Chinese real estate investors have many reasons to consider putting their money into US possessions rather than those closer to home. CNBC notes that governmental controls in China are so tight, the future of investments so limited, that sending their money abroad makes much more sense. These investors see the US government as protecting their real estate, whereas the Chinese government is likely to take their properties away.

And while the Chinese people have prospered, growing richer as their national economy outpaces most other countries, China isn’t an ideal place to invest those growing funds. An article in RealtorMag cites a number of reasons for Chinese nationals looking to send their money abroad, including growing pollution, food safety and even the increase in traffic. The government’s stringent control over financial institutions in the real estate investment sector is another huge driver.

The ongoing “anti-corruption” efforts in China are also affecting the decision to send money abroad. Chinese President Xi Jinping is currently embroiled in what CNBC calls, “the most extensive effort to root out ill-gotten gains”, which translates to the government attempting to take control of funds that it may not actually have any right to. That fuels further distrust amongst the Chinese people, giving investors an incentive to protect their wealth by diversifying it on the international market. US real estate is an ideal option here.

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An Unprecedented Scale of Investors

Chinese real estate investors have as many different wants and needs in properties as any others, but they’re increasingly finding that the US market meets those requirements. Over $40 billion has been put into US real estate by Chinese investors since 2000, and that trend shows no sign of slowing down.

Where Are They Investing?

While the US as a whole might be drawing in Chinese investors, they’re not investing evenly across all 50 states. There are obvious hotspots, like California and New York, but there are others that might come as something of a surprise. North Carolina and South Carolina are in the top 15 states receiving the highest investment activity from Chinese investors, but Virginia actually outranks all other states in terms of dollar value invested. Seven states have received no interest from investors, though, including Maine, West Virginia, Wyoming and the Dakotas.

In the end, Chinese real estate investors are flocking to American properties, and it is a good thing for both buyers and sellers, with the pace of investment intensifying year after year.

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Source:

http://realtormag.realtor.org/commercial/feature/article/2014/02/hooks-and-hurdles-for-chinese-investors-in-us

http://www.cnbc.com/id/102001876#.

http://blogs.wsj.com/chinarealtime/2014/10/22/the-top-10-u-s-states-where-chinese-are-investing-in-real-estate/

Real Estate Brings Chinese Investors to the U.S.

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