I hate to be the prognosticator of doom but I truly believe that the DC real estate market is in for a correction. The transactions I have seen and heard about over the past 3 months are as crazy as they were in the early 2000 or the 1980s. Houses come on the market and agents wait until after the open house to take offers. Why? So they can get some new clients out of the open house and generate more and higher offers for their clients. New listings generate 4, 8, 12 bidders with escalation clauses or cash deals. What can you do?
As this article in the Washington Business Journal and a follow up in DC Curbed explains, there are 25,000 new apartments coming on the market in the next 36 months. This does not include small to medium sized developers (2-20 unit buildings). Many in the Shaw / Logan / U Street area will deliver by the end of 2013 or early 2014. The DC area is growing but as the Journal says, that requires almost 40,000 NEW residents of DC.
As WTOP was saying today, the national housing market is recovering. DC has been recovered for a while. This market is just crazy. Prices will hopefully stabilize or more probably come down. I just hope current bidders are not falling victim to and auction Winners Curse.