What does low inventory in DC mean?

vacation-rentalsA slow and low Winter of homes for sale tends to lead to a blossoming of inventory and a more active market in the warmer months. But this year seemed to be the exception; especially for the DC area.

Local real estate experts say that a healthy market should have around a six-month supply of inventory, but this year there is less then a two-month supply in the DC market. Based off 2012 numbers, DC inventory has dropped 27% and it has affected all price ranges and housing types. The inventory segment to be hit hardest by lackluster supply are the lower-priced starter homes, which are down 42%.

What does this mean for real estate agents in the DC area?

Lower inventory means higher prices which are scaring away first time home buyers like millennials and keeping them in the rental game. Because of this the multi-family market is seeing a huge boost.

Multi-family inventory saw a 3.6% increase last year – greater the national average of 2.4%. And, with over 4,600 units permitted in 2016 – the second highest and only exceeded by the record breaking 2015 – this new inventory has helped keep rents under control with a slim 2.6% year-over-year increase in rents – compared to 4% nationally. These numbers renting a viable option for those priced out of the competitive sales market.

Screen Shot 2017-12-11 at 11.40.44 AMNow that we’ve hit the Winter season once again, only time will tell whether or not the market can swing back around in Spring 2018.

How can agents capitalize on this strong rental market?

The Rental Beast platform provides the perfect addition to any real estate professionals business portfolio. We have the largest database of listings in the DC area including the MLS and other local sites that our Rental Beast ninjas have meticulously searched for, acquired, and added to our platform with the all information you will need to help your clients. Our platform provides several avenues to help agents market themselves and generate rental leads in the DC area.

Rental Beast agents live by the mantra that all rental leads are future home buyers. By building that relationship now handling their rental search, you ensure that when they decide to purchase in the future, you will be the first person they call.

 

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Housing Inventory: What does it mean for you?

findperfecthome.jpgThere are many options available when it comes to a choosing where you lay your head at night. Are you planning on buying that dream home you’ve been designing/decorating in your imagination over the last few years, or have you decided to lease an apartment, condo, house, or townhouse that allows you to walk or bike to all the local favorites you’ve been commuting to for far too long?

There are positives and negatives to both, but more and more often your choices are limited if you’re looking to buy that starter (or forever) home. However, there continue to be many options when it comes to leasing a place to live.

You can work with the experts and reach out to a Real Estate firm, then give them your wish list so they can find you multiple properties to view (hopefully in your price range). These are all valid options, and things I’ve done myself, but what I’ve noticed over the last few years in DFW is that once you find something you love there are most likely going to be offers already in. This doesn’t leave you with many options if yours isn’t accepted, or you have to go into a bidding war. According to CNBC, this is because the number of homes being rented out is increasing, which brings down the available options to buy.

11-5-Couple-Moving-Boxes-Into-Their-Perfect-New-HomeSo, what does this mean for you?

Fortunately, there are so many great rental properties available but you might have to check a website hoping they’re up to date and accurate…or we’re back to driving up and down the streets in your favorite neighborhood looking for a sign in the yard. In addition, there is always the option of working with a local expert from a Real Estate firm who already has access to those hidden gems and knows exactly what you need.

If you’re downgrading from an empty nest or having to wait until there are more options available before you buy it doesn’t mean you can’t find a rental with all of your must-haves, but you should know where to look and who to work with to make sure you get what you want.