Economy.com Predicts Increased Sales in DC

"To find those areas which are expected to experience increased sales, Forbes paired with Moody's Economy.com to research current home sales patterns and sales projections in the country's 40 biggest real estate markets. Based on models that estimated 2008 housing inventory, sales rates and turnover, they arrived at a list of markets that are experiencing price stalls or declines, but where over the coming year are expected to provide deals for buyers.  The results turn out three types of markets.

The first are undervalued, affordable markets like Fort Worth (TX), which haven't felt huge, post-boom price corrections, but where there is an expected acceleration in sales volume, making now the time to buy.

Second are markets like Long Island (NY), and Washington (DC). These are traditionally strong areas that are recovering from speculation, especially in the D.C. condo market and by Long Island's second-home buyers. Once these areas stabilize, the market as a whole should return to health.

Third are riskier markets such as Las Vegas (NV) or Orlando (FL), which are experiencing lending and inventory problems but relative to regional markets - in Las Vegas' case, Los Angeles and in Orlando's case Tampa and Miami - are expecting to see significant pickups in sales activity, according to Moody's, and therefore become better buyers' markets because of a relatively lower risk.

But economists caution that while over the next year the dust may settle in these spots, buyers should be prepared for future swings. This is especially true in the case of riskier markets like Orlando and Las Vegas, where the expected increase in sales volume and housing turnover doesn't necessarily mean that the price trough is imminent."

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Shari Walker
Long & Foster Realtors
Washington, DC

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