Real Estate
Home sales in the time of coronavirus
A mixed bag for buyers and sellers in D.C. real estate market
Spring is almost always the strongest time of year to sell a property: buyers awaken from their winter slumber, all seeming to need to buy at the same time, and homes sell fast and sell high. For agents and sellers, spring is normally a season of plenty.
In the era of coronavirus, however, the market has undoubtedly changed. With government guidelines against gatherings and open houses, the traditional marketing process that is based on getting as many visitors as possible to a listing is turned on its head. One would think the real estate market would never survive such changes, and that prices would be in free-fall.
But interestingly, that is not happening. In fact, prices are, for the most part, holding steady. Many properties are getting multiple offers. Buyers are, indeed, still buying, and closings are still taking place. Perhaps, to the real estate market, COVID-19 might be just a mild cough after all?
Not so fast. It turns out, the effects are a bit of a mixed bag. Regulations restricting showings and open houses, and new procedures that agents and buyers are taking to protect their own health are having a negative impact on many types of properties. This is exacerbated by a tightening of lending in the investor community and an overall sense of caution for properties that are not thought of as mainstream. Some properties, like the recent listing at 142 Kentucky Av., S.E. in Capitol Hill, listed by my colleague Kara Johnson, received three offers and sold in just 4 days. Another move-in ready home at 3206 5th St., S.E. reportedly received 17 offers on April 1. But other properties, like a four-unit townhouse listing we have at 15th Street and U Street for $1.699M, and an enormous Mount Pleasant fixer-upper, are not getting many showings.
Kara, a long-time agent at Keller Williams Capital Properties, attributes her success to the character of the property, its price and the desirability of the location. āIt just fits for so many buyers out there. It was a great price and it was move-in ready,ā she said. The four-unit, more interesting to investors, attracts a smaller pool of buyers, most of whom would see that investment as non-essential, and possibly more risky, soā¦ crickets. From this experience, it seems that this could be an excellent time to negotiate a great price for investors who have cash and arenāt afraid of our long-term prospects.
The nationās largest real estate showing tool, ShowingTime, reports that showings in our area are down 70.9% from this time last year. Yet prices have held steady for the market overall. So how are the āmainstreamā properties getting buyers in the first place? The process has changed. Tyler Smith, on the Bediz Group team at Keller Williams Capital Properties, recently showed our clients a property in Woodley Park. āIt all starts online,ā Smith said. āMost good listing agents are spending the extra money for fully interactive, immersive 3-D video tours, which gives buyers a very good sense of the house before they ever leave their couch.ā
That technology, developed by a company called Matterport, allows users to tour a home from their computer and see every corner, every angle and basically every detail from their phone or computer. āOnce my clients saw all the properties out there online, they only wanted to see one or two in person,ā Smith continued. And by altering the normal showing procedure, from driving separately to those two properties, to bringing hand sanitizer and disinfectant spray for doorknobs and lockboxes, to maintaining as much distance on the tour as possible, it seems a showing can be done safely after all.
Once a property is under contract, the process changes a little bit more, but not noticeably. Brock Thompson, also on the Bediz Group, recently had a client go under contract for a condominium in Foggy Bottom. Once the buyer left the initial tour, he and Brock were never face-to-face again. The inspector was able to inspect the unit without interacting with Brock or the listing agent. The appraiser did what is called a ādrive-byā appraisal, in which he or she relied on internet-based data, including photography from the listing, to confirm the value of the property. Everyone involved could work on their own. In fact, the buyer didnāt have to meet anyone in person again, until his settlement date. āMy client is thrilled he could still realize his 2020 goal of home ownership, and stay safe and keep others safe at the same time,ā Thompson said.
The settlement process itself has also changed, albeit slightly. Rob Rothstein, a title attorney at Paragon Title & Escrow, developed an ingenious way of keeping buyers and his staff safe during this pandemic: drive-through settlements. While his office, in the heart of Logan Circle, is convenient enough, he knew that buyers, sellers and those refinancing would want to be able to do their business with as little human interaction as possible. He arranged to have all documents sanitized and brought to their customers in their car as they waited in front of his office. Once they complete signing and presented their identification cards, he is able to notarize the documents, then scan copies to them. For cash deals and with limited banks, he can even perform settlements using an āe-notaryā service that eliminates the need for clients to even leave their homes. āElectronic signing isnāt here yet for most real estate settlements,ā Rothstein said, ābut perhaps one good thing that could come out of this is greater pressure to allow for it.ā Currently, electronic closings are not accepted by most mortgage lenders and jurisdictional recorders of deeds, but laws and lender requirements have been loosening slightly.
All in all, our experience shows that as a buyer, you may have an opportunity to buy with less competition at the moment, but just as in any market, the most appealing properties are likely to get multiple offers. Savvy investors, handy homeowners and cash buyers might be able to get a better deal on properties that donāt appeal to mainstream buyers. And anyone concerned about safety can rest assured they can complete the journey to homeownership with little risk of infecting themselves or others in the process.
David Bediz is the 15-year veteran leader of Bediz Group, LLC, a boutique real estate team at Keller Williams Capital Properties in Dupont Circle. He is licensed in Maryland, Virginia, Delaware and the District and can be reached at bediz.com, [email protected] and 202-352-8456.
Real Estate
Migration trends: LGBTQ buyers moving to suburbs, small cities
Finding welcoming communities beyond traditional urban strongholds
Over the past few years, a significant migration trend has emerged: many buyers are leaving urban areas in favor of suburban or smaller city life. This shift is largely driven by the rise of remote work, lower cost of living, and the appeal of a quieter, more spacious environment. For LGBTQ buyers, this trend offers unique opportunities and challenges as we seek welcoming, affirming communities beyond the big cities.
Why LGBTQ Buyers Are Considering Small City Living
Historically, LGBTQ individuals have flocked to larger cities known for their vibrant queer communities, social support, and acceptance. Cities like San Francisco, Chicago, New York, Miami and Los Angeles have long been hubs for LGBTQ life. However, recent trends show a shift in priorities:
- Remote Work Flexibility: The pandemic accelerated the adoption of remote work, giving many the flexibility to live outside urban centers. LGBTQ individuals can now prioritize factors like home space, affordability, and lifestyle without being tied to a city office. This newfound freedom allows us to consider locations that may offer a more balanced quality of life.
- Affordability and Space: Urban centers have high costs of living, making homeownership a challenge. Many LGBTQ buyers are looking to build families and settle down, which often requires more space than city living affords. Suburbs and smaller cities typically offer larger properties and single-family homes at a more affordable price, making them appealing options for those seeking more space and financial savings.
- Emerging LGBTQ-Friendly Communities: While cities have traditionally been safe havens for LGBTQ individuals, many suburbs and smaller cities are becoming increasingly inclusive. With Pride festivals, community centers, and local businesses openly supporting LGBTQ causes, these areas are actively working to attract and retain LGBTQ+ residents
Considerations for LGBTQ Buyers in the Suburbs
Moving to a less densely populated area may offer financial and lifestyle benefits, but itās essential for LGBTQ buyers to research and ensure they are moving into a supportive environment. Here are some factors to consider:
- Assessing Inclusivity and Safety: Before moving, itās wise to visit potential neighborhoods to get a feel for the local culture. Researching online forums, LGBTQ community groups, and checking local nondiscrimination laws can also provide insight into a location’s inclusivity.
- Access to LGBTQ Services and Community: Many LGBTQ individuals value access to queer-friendly healthcare providers, legal support, and social networks. Some smaller communities may lack these resources, so itās important to verify that youāll have access to the necessary support services.
- Finding Local LGBTQ Groups: Community connection is crucial for LGBTQ individuals. Many suburbs have smaller but growing LGBTQ groups, often organized through social media or apps like Meetup. These groups can help you form connections, find local allies, and establish a sense of belonging in your new area.
Suburban Growth and Its Impact on LGBTQ Buyers
The migration to suburban areas has led to increased demand for single-family homes, which can lead to supply shortages and higher competition. In some LGBTQ-friendly suburbs, this demand has driven property values up as more people seek out homes that provide both the physical and emotional space they need to thrive.
Some suburban areas are responding to this demand by creating or improving amenities such as public transportation, dining, and cultural attractions, all of which contribute to a vibrant community. For LGBTQ buyers, this trend could mean greater access to the cultural and social opportunities they may miss from city life, alongside the benefits of suburban living.
The migration of LGBTQ individuals to suburbs and smaller cities highlights an exciting shift in lifestyle and priorities. As more suburban areas embrace diversity and inclusivity, LGBTQ buyers have the opportunity to find welcoming communities beyond traditional urban strongholds.
At GayRealEstate.com, weāre here to help you find LGBTQ-friendly real estate agents who understand your unique needs and can guide you through the process of finding your perfect home, wherever that may be. Whether youāre looking in a bustling city, a tranquil suburb, or a charming small town, our network is here to support you every step of the way.
Jeff HammerbergĀ is founding CEO of Hammerberg & Associates, Inc.Ā Reach him at 303-378-5526 orĀ [email protected].
Real Estate
Uncertainty everywhere: the ups and downs of real estate
With rates declining, weāre ready to get off this roller coaster once and for all
Itās an election year, after a once-in-a-century pandemic, and the country has an uncertain future; for many of us, it feels like its own existence is hanging in the balance. With so much uncertainty in the air, few people would think of real estate at this moment, right?
Perhaps. But for a large group of buyers and sellers actually entering the market now, after waiting years for rates to fall, it seems as good a time as any to join the froth of a bubbling market. To be clear, the frothiness is not felt everywhere, nor for every type of home, so once again, uncertainty seems to be the word of the day and the overall mood in the air.
Sept. 19, 2024 was a date that sellers, buyers and most of all Realtors had circled on their calendars, waiting with breathless anticipation as the promise of a Federal Reserve cut in the overnight lending rate (the āprimeā rate) was all but promised by chairman Jerome Powell in the preceding weeks and months. Speculation abounded as to whether it would actually happen though, since Powell had previously promised rate cuts throughout 2022 and āat least threeā in 2023āonly to play the Lucy role with her proverbial football over and over again, never actually reducing rates by even a skosh.
Those in the know would barely venture an optimistic guess as to whether it would truly happen, and the optimistic few that said āthis time, this time it has to happenā would only commit to the cut being a quarter point.
In the weeks before the meeting, mortgage lenders saw that interest rates offered in the open market to consumers actually did fall, which was an indication that market players themselves were more optimistic than the pundits, and had ābaked inā the portended rate cut already.
But when Powell made the announcement, he didnāt just give us the football, he gave us a touchdown ā with a half-point reduction. Realtors rejoiced; sellers said āsell,ā buyers got pre-approved and homeowners considered refinancing, all at the same time.
But when lenders answered calls from would be buyers and refinancers, they had to give the grim news: apparently, the market had baked in too high a rate cut alreadyāand rates actually went UP instead.
So, Lucy turned out to be there all along, not pulling the football back with the hands of Powell, but with the so-called āinvisible handā of market dynamics. Sellers, buyers, and Realtors alike sighed with disappointment, as we then anticipated a season with less froth after all.
All that said, the numbers are actually pretty good in local real estate. While days on market for closed single family homes, condos, and co-ops is up to an average of 23 in Washington, D.C., from their lows of 11 in 2020, median prices this year are actually hovering right near their all-time highs in 2021 of $671,000, down just 0.9% to $664,500.
The resilience of the housing market is buoyed by strong single-family home sales in upper Northwest D.C. which seems to have bidding wars for almost every property; those in the business will certify that condos, especially in more transitional areas, are suffering in the meantime.
Many of our clients with the slower-moving properties are turning to renting them instead, which has caused a higher inventory of rental properties, in turn resulting in some softening in rental prices from their peaks in 2022. So for many sellers, landlords, and agents, this year has felt like a slow one no matter which way we turn.
To navigate these twists and turns of an ever-surprising real estate landscape, it helps to turn to experienced advocates, especially those that have weathered a similar storm before. Our team, for example, has helped our clients through the relatively painless market slowdowns in 2005 and 2007, and of course through the world-changing market crash of 2008, and then the drastically uncertain times during COVID.
From my perspective though, it has been the post-COVID time of high interest rates that is the most challenging of my whole career, and the most frustrating for some of our clients. I think we can all agree that we are ready to get off this roller coaster once and for allāand to not ever want to ride it again.
David Bediz is team leader and a 20-year veteran agent at the Bediz Group, LLC. Reach him via bediz.com or 202-642-1616.
Real Estate
Spooky Pride: Thrifty LGBTQ Halloween decor tips for your rental
Halloween is the perfect time to show off your creativity and embrace both the spooky and fabulous. For LGBTQ renters, itās an opportunity to infuse your space with festive flair that reflects both pride and personality ā without breaking the bank. Whether you’re hosting friends for a ghoulish gathering or simply decking out your apartment for some solo seasonal fun, we’ve got you covered with budget-friendly, LGBTQ-inspired decorating tips that bring glam, style, and inclusivity to your haunted home.
1. LGBTQ Symbols and Colors. Rainbow-Inspired Decorations: Incorporate rainbow-colored string lights, garlands, and flags into the Halloween decor. This can be paired with classic black and orange Halloween colors to create a unique, inclusive aesthetic.
Pride Pumpkins: Paint pumpkins in rainbow or trans Pride flag colors or carve designs like hearts or symbols of equality to mix Halloween with LGBTQ pride.
2. Drag Queen-Inspired Glam. Glitter and Glam: Draw inspiration from drag queens by adding glamor to Halloween decor. Use metallic streamers, sparkling skulls, and shimmery fabrics for a fabulous touch.
DIY Drag Masks: Create or purchase affordable masks with feathers, sequins, and bold colors for a decorative wall or window display, which can also double as party favors.
3. Inclusive Horror Icons. Iconic Figures: Use LGBTQ-friendly horror icons like Elvira, Divine (from āPink Flamingosā), or characters from āRocky Horror Picture Showā in posters or costumes. They add a campy, queer edge to Halloween dĆ©cor.
DIY Posters or Cutouts: Print out photos or posters of these characters and frame them inexpensively to give your apartment a bold statement piece.
4. Thrifty Decorating Tips. Up-cycled Decor: Thrift stores are a great resource for inexpensive Halloween props ā like old frames, candle holders, and vasesāspray paint them black or gold for a spooky and chic feel.
DIY Spooky Lanterns: Repurpose mason jars or old glass containers by placing battery-operated LED lights or tea lights inside. Decorate the outside with stickers or painted-on spooky designs like bats, pumpkins, or cobwebs.
Black Lace on a Budget: Drape black lace or fishnet fabric (found cheaply at fabric stores) over tables or lampshades for an eerie, gothic vibe.
5. Queer-Friendly, Sustainable Alternatives. Eco-Friendly LED Lighting: Encourage the use of LED lights in purple, orange, or green. Not only are they energy-efficient, but theyāre safer for apartments that may have limitations on open flames or outlets.
Plant-Based, Vegan Candles: For a spooky, cozy vibe, suggest plant-based, cruelty-free candles. Opt for scents like pumpkin spice or cinnamon for a seasonal touch without compromising on values.
6. Community Engagement. Collaborative Building Decor: Suggest organizing a building-wide LGBTQ-friendly Halloween decorating contest where neighbors can share resources and collaborate. This fosters community spirit and makes decorating more fun and budget friendly.
Host a Pumpkin-Carving Party: Recommend throwing a pumpkin-carving event, allowing friends and neighbors to come together for a fun, budget-friendly activity.
Halloween is a time to unleash your creativity, and with these thrifty LGBTQ decorating tips, you can transform your rental apartment into a spooky, Pride-filled haven. From rainbow pumpkins to drag queen glam and up-cycled decor, these ideas prove that you donāt need a huge budget to make a big impact.
So, whether youāre hosting a Halloween party or just want to embrace the spooky season with a queer twist, these decorating tips will help you celebrate with flair and Pride. And remember, Halloween is about having fun, being unapologetically yourself, and expressing your unique identityābecause in the end, thereās nothing scarier than not being true to who you are.
Scott Bloom is owner and Senior Property Manager, Columbia Property Management. For more information and resources, visit ColumbiaPM.com.
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