An 'Abrupt Slowdown' In DC

The Washington Times is just waking up to the housing bubble. "Last year's real estate market ended very differently than it began, leaving Washington area buyers, sellers and Realtors wondering just what to expect from 2006. The market cooled off abruptly in the second half of the year, though many in the area still haven't come to terms with that." "'It has been interesting, hasn't it?' says Alana Lasover, sales manager (in) Bethesda. 'And I think it will get more interesting this year, but I don't know how yet. In January, a lot of clients were being told, 'Wait another month. Wait until after the Super Bowl to do anything,' she says. 'That's because we've always said Super Bowl Sunday kicks off the year's market. So what's going to happen? You know, I've been in this industry for 30 years, and I still can't tell people what is going to happen,' Ms. Lasover says. 'We just don't know what lies ahead.'" "During the first half of 2005, the housing market was rather predictable. Homes sold very quickly, so buyers were told to expect some disappointments because other buyers would get in their offers faster or outbid everyone else. 'Back then, you only had a day or two to see a home before it was sold, so buyers really had to be prepared to win,' says Jaye Jordan, a realtor in Bowie. 'It's different now. "'Sellers today need to be more open to help from their Realtor,' Mr. Jordan says. 'The services of a Realtor are even more important than before, particularly because pricing has changed.'" "'If you price a home too high, you can wind up getting even less than if you had priced it properly to begin with,' Mr. Jordan says. 'Some sellers still haven't made the transition, haven't realized that the market has equalized. And their homes are staying on the market longer than others. Even some of the Realtors haven't made the adjustment as of yet.'" "In December, the median sales price there was $315,000, compared to $449,000 in Montgomery County and $484,000 in Fairfax County. 'The first time I heard it, it caught me off guard. It was early 2004, and it was the first time I heard someone say they were moving from Montgomery County to Prince George's County,' Mr. Jordan says. 'Before then, it was common for folks to move [in] the other direction, but when prices got too high in Montgomery, folks starting looking around.'" "'This is a trickle-up industry,' Ms. Lasover says. 'If the first-time home buyers can't find something they can afford, if they never come into the market at all, that means the next guy up the chain can't make his move. If he can't sell his home, he can't buy his next home. And if all that movement doesn't take place, the market really slows down.'" "'At the other end of the market, some people aren't buying because homes have become so ridiculously overpriced,' Ms. Lasover says. 'I've heard people say, 'I am not paying $1.3 million for that one-bath, no garage house with tiny closets. No way.'"