New administration: whole new ball game? It seems to those of us who live in other parts of the country that the Washington D.C. area will transform overnight. Eight years of one party’s players will uproot themselves and silently steal away, while the other party’s new cast of characters will buy up those homes hoping for an eight-year stint.
Perhaps if the economy was not so shaky, this might be true. Judging from Realtor blogs whose commentaries reflect what shakes in the D.C. area (lovingly referred to locally as NoVa), it won’t be as huge an upheaval as most of us might imagine.
Keller-Willliams Vicky Chrisner of Dulles comments on Trulia.com, “There has always been a shift in the NoVa area following elections, especially when parties change. We’ll see an increase in activity; it’s unavoidable.” She continues, “I’ve been getting a lot of calls from investors that seem to think Obama’s presidency will result in a more depressed economy for longer, resulting in more renters for a longer period of time – so the investors are ready to buy more rental homes.”
“With only about 3,000 political appointees brought in by a new administration, many opt to rent, given the temporary nature of their appointments, while most focus on homes within the District itself,” says area Sotheby agent, J.P. Montalvan.
On a separate blog, Keller-Williams consultant Katie Wethman reasons, “Many of the current administration won’t leave, so it’s not a one-for-one swap in residents even with a complete turnover in administration. Some will have fallen in love with the area, some will have kids in schools and other local commitments that they don’t want to give up, and many will be absorbed into lobbying and law firms. So 100% of the current administration won’t be leaving.”
“Junior staffers will undoubtedly rent,” she adds, “but senior officials and their families could just as easily look to buy – especially when they absorb the sticker shock of high rental prices in this area. They’ll likely decide this is a good time to buy, with historically low rates, a relatively high (though shrinking) level of inventory from which to choose, and their new four-to-eight year time horizon.”
Wethman also blogs that the District and Arlington were recently named two of the top ten places to live in a recession, citing the area’s real estate market has traditionally held up well in comparison with the rest of the country.
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