2011, A Positive Outlook from Paul Valentino

Paul Valentino, President, Greater Washington, Coldwell Banker Residential Brokerage Mid-Atlantic 

Paul Valentino President Greater Washington Coldwell Banker Residential Brokerage Mid-Atlantic       Owned and Operated by NRT LLC

A Positive Outlook As we look at the Greater D.C. economy and housing market here in the dawn of 2011, it feels like we’re standing on a mountain ledge after a hard-fought climb. We can peer downward as we catch our breath and see how far we’ve come. When we gaze above and see the mountain peak getting closer, we know there’s still a challenging climb ahead. But the hardest part is behind us. Having been through one of the toughest markets on record and still in the process of recovery, it’s natural to worry about the worst-case scenario. Hopefully, this fear isn’t preventing too many from achieving homeownership. Life shouldn’t be put on hold, especially when forecasts for the region give good reasons for optimism (even if understandably cautious). George Mason University’s Economic Outlook through 2015 bears out the mountain-climbing analogy I used above. We’re steadily heading uphill. Stephen Fuller, director of the Center for Regional Analysis at George Mason University, told Fredericksburg.com our regional economy will gain momentum through late 2011 and 2012. Fuller also said recently the region is expected to start adding construction jobs in mid-2011, accelerating in 2013 and 2014 as the residential housing market improves. While it will likely take the nation until 2014 or 2015 to get back the number of jobs which have been lost, this region is expected to achieve that in mid-2011. Why is the D.C. Metro ahead of the nation as a whole? We’re fortunate to be a central hub for federal government jobs, private sector jobs funded by government contracts and businesses that service those companies. This has cushioned our local economy and made it more resilient during even the worst times of the recession in 2008 and 2009. According to Fuller’s 2011 U.S. and Washington Area Economic Performance and Outlook report, the federal government generated 34.9% of the local economy in 2010. Hesitance to purchase a home is understandable even in light of the positive forecast, however it should be weighed against other opportunities which exist at the moment. Mortgage rates have slowly been increasing, yet they’re still very low. Homes have been more affordable, and prices will assuredly go up as demand increases and inventory shrinks just as it happened throughout 2010. For qualified buyers, these are certainly factors to consider. Meanwhile, we at Coldwell Banker Residential Brokerage have weathered the storm. We lived through what is hopefully the most challenging housing market we’ll ever see and we’re still here. I know it’s been difficult, and I commend all of you on your consistent work ethic. You’ve helped our clients adapt to difficult realities, educated sellers to position their homes properly and assisted buyers in finding homes which meet their needs. For management’s part, we’ve done our best to continue providing you all the tools and education you require to retain the competitive edge in any market. I truly believe the toughest times are behind us. Believe it and make it happen!