Montgomery County housing prices (Silver Spring, Bethesda: appointed, real estate, foreclosures)

[jcza]

Do you think housing prices in Rockville/Bethesda/Potomac/Gaithersburg have much further to fall? We are relocating to DC and looking for a single family home in these areas. I am very concerned that the bubble has yet to really burst there, and that prices will continue to fall this year. Any thoughts or feelings on this matter?

[tonyc]

Originally Posted by jcza

Do you think housing prices in Rockville/Bethesda/Potomac/Gaithersburg have much further to fall? We are relocating to DC and looking for a single family home in these areas. I am very concerned that the bubble has yet to really burst there, and that prices will continue to fall this year. Any thoughts or feelings on this matter?

Not in those areas you mention, especially Bethesda and Potomac proper. They may fall a lil more but not a whole lot. This area has 6.1 % uneployment which is one of the lowest in the country. I think last year this time it was 3.1 %

Then it depends on which direction the current administration takes the country, and where will be in the third quarter.

You can always go to SDAT and see what the seller paid for the house, and this would give you a good idea of what they may let it go for.

If I were on the market, I would wait until next year 2nd quarter just to be sure.

[aneftp]

Originally Posted by jcza

Do you think housing prices in Rockville/Bethesda/Potomac/Gaithersburg have much further to fall? We are relocating to DC and looking for a single family home in these areas. I am very concerned that the bubble has yet to really burst there, and that prices will continue to fall this year. Any thoughts or feelings on this matter?

The new media is very misleading with the "DC housing crash". What they mean is the "outer suburs" like the boonies in Northern Virginia (Prince William County, western Loudon County), parts of Maryland like Charles County and some parts of PG County.

Yeah, Mont. County will probably drop anywhere between 10-15% when it's all said and done (it already has). But if you think you are going to come into Potomac and get a home at a 25-40% discount from "peak 2005/early 2006 prices" like you get currently get in Las Vegas or parts, you can keep on dreaming.

The bad economy has actually started hitting the DC area, although as the other poster said, it's unemployment rate is probably the 3rd or 4th lowest in the country...mainly protected by Government jobs or government contracting jobs. But the DC area is not solely dependent on government job, it has health care, tech jobs etc.

[Bigbluelandrover]

We are looking and there are a lot of foreclosures. We are looking in Silver Spring-far north Colesville/Cloverly area and there have been some discounts but you have to search hard. Some owners have had properties on the market for over a yr and still refuse to drop the price. Prices are down but not like you'd expect.

[trying2moveup]

Originally Posted by Bigbluelandrover

We are looking and there are a lot of foreclosures. We are looking in Silver Spring-far north Colesville/Cloverly area and there have been some discounts but you have to search hard. Some owners have had properties on the market for over a yr and still refuse to drop the price. Prices are down but not like you'd expect.

Alot of owners around here also own their homes free and clear and they will let it sit on the market until THEY are ready to mentally pull the trigger - whether that means lowering the price, taking it off the market, or waiting for someone to make an offer to counteroffer. They don't have to pay a monthly note, they can afford the upkeep and taxes, and so they wait. . .

Also, as mentioned, this area will never completely tank because of the proximity to DC and the govt work base. I'm trying to remember which newspaper it was, but I believe it was the real estate section in last Saturday's Washington Post that had a graph of the entire metro area and showed price declines and increases by % on the map. Parts of MoCo, like other counties, are up in price. Bethesda, Chevy Chase, lower Rockville, Friendship Heights - these have all INCREASED in median price.
Very desirable areas.

I agree with the poster that said if you are going to come here and look in MoCo and think you'll get Las Vegas bottom feeder prices, you are going to be disappointed.

As far as trying to time the market, I DO believe it is still declining but I also think it is foolish to try to time the absolute bottom. First off, it's impossible to predict that and secondly, a lot of low priced homes (especially foreclosures) now - finally - accurately reflect the condition of the house. Are you wanting minimal rennovation before moving in or complete redo requiring time and money. . . if the latter, there goes your "savings" in the price.