Thursday, April 08, 2010

Washington DC Re-Busting!

Looking at the latest Radar Logic home price data it’s safe to say that Washington DC home prices will very soon break below the most recent low set in March of 2009.

Ironically, the trends in the Washington DC market probably best represent the dynamics instigated by the government’s tax-gimmicks, quantitative easing measures, foreclosure mitigation and mortgage sponsorship.

Yet, even with all the market meddling, prices are clearly headed back for a strike at the low dropping 9.87% on a year-over-year bases and a whopping 38% since the peak in 2006.

How many unwitting buyers were duped into locking in a “housing bottom” home purchase only to now find that the government’s incentives were dangled out over an abyss of deflation?

Make no mistake, this is a major event as the Washington DC area is one of the country’s most affluent metro housing markets and was not overwrought with overbuilding.