Home Values and the Value of Home-A Whole New Outlook
The past few months, while COVID-19 forced us to shelter in place, home values, and our interpretation of the value of our home to us, both saw an upturn in the DMV market and around the world. In real estate, we often encourage our clients to discount or ignore the personal value of their homes. What a home means to one person doesn't necessarily equate to what home means to another. However, being in our homes for an extended period has made us all reconsider a home's value beyond its equity.
Our homes now must accommodate every element of our lifestyle. It is required to serve several purposes while we still stay connected to the world and wait for some sense of normalcy to return to our communities. We have found new ways to use our homes to conduct business, teach school, exercise, and craft our culinary skills. We have invested in upgrading parts of our home to increase our comfort inside and on the perimeter if we have access to outdoor space. Our time in our home has created an opportunity for us to truly reflect on its value to our lifestyle, not just our livelihood.
At the same time, we have experienced an increase in housing prices. Perhaps it has something to do with others who are dissatisfied with the value their current home brings to their lifestyle. But it has a lot to do with people staying right where they are and not putting their home on the market unless they have to. In May 2020, Washington DC home listings declined by 48% compared to a year ago, from 3,509 to 1,711, while the average list price increased over $150k.
Despite the dramatic dip in inventory, and increased prices, people aren't just looking anymore; they are buying. We expect that this will level out at some point as more homes are listed, but it is important to note that the DMV housing market is still strong. People are looking for value in different ways with a different mindset. With our recent experience and unknown future, a home's value is taking on a whole new meaning. It remains an excellent financial investment for the long term, and it is our space of retreat, safety, and employment for some of us, at least for the short term.
If you are considering buying or selling your home, let's discuss the market and what opportunities are best for you at this time. Everyone has different needs. Let's discover yours.
Cheryl Shaw is an award-winning licensed realtor in Washington DC, Maryland, and Virginia with the Shaw Sells DC Team of GreenLine Real Estate. She helps professionals discover, secure, and develop real estate opportunities with clear goals and simple strategies. Contact her for a free consultation at 202-823-9313 or ShawSellsDC@gmail.com