Does More Jobs Really Mean More Buyers?

We say it over and over again in the DC area right now, more jobs are coming, which means good news for real estate as more buyers come into the market.

Let’s not forget that the rest of the country is still languishing for the most part. Because of the tier of jobs being added those positions that are filled by people from outside the area are likely being filled by home owners. Home owners who are probably not going to have the easiest time selling their home on the other side.

People who cannot sell their home do not often purchase a new home in their new city. Rather they will rent until they can get the property moved, or finally make the decision to rent out the old digs. That’s not to say that certain levels of talent are not being offered relocation packages, but I have to assume those packages are not ubiquitous.

All to say, lets not put jobs out there as an immediate fix for what could be more housing struggles to come. In the long run employment will buoy our market and give us solid ground for growth. However, to give too much credit to those factors now, in the the market of today, is premature.

Additionally: We have seen heavy reductions in prices in our area, yet have been heavily insulated in comparison to the rest of the country. Taking that into consideration the post tax credit slow down is more than palpable in our market right now. If that is true here, it is especially true everywhere else.

Generally speaking now is still a good time to buy. Sellers are seeing less traffic and making frequent price reductions. Just know that buying now could still mean a reduction in value in the immediate future. However, long term you will have bought at or close to bottom and have a loan with possibly the lowest interest rates we will ever see.

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