Capitol Hill Housing Market Still Strong, Real Estate Agents Say

So, it has been a jobless recovery for the nation's economy.

And, the mortgage rate is no longer as low as it was in early summer.

Then comes the weekly report from the Mortgage Bankers Association of America, saying that demand for home loans last week slipped 7 percent from the previous week, on top of declining numbers before that.

"August was sluggish," says Bob Williams, a Capital Hill specialist with Coldwell Banker Residential Brokerage, "listed houses stayed on the market a little longer than before."

"It is slowing down a little bit, not as crazy as this time last year," commented Bill Panici, a DC real estate broker with Weichert Realtors who sold a house in the area of Maryland Avenue and 12th Street earlier this year.

Is the real estate bubble finally going to burst?

Not so fast.

DC is a very different market, and the market is still very strong, according to experts in the area.

"You don't listen to the noise about the national numbers," says Mr. Williams, who, at any given time, has multiple listings in the Capital Hill area. "I am aware of what is going on here. I am out there everyday."

He says August indeed slowed down a bit because of the higher mortgage rates and the traditional vacation time, but now the activities seem to be picking up again.

People have returned from their vacation, and the rates are coming down, again. Interest rates, excluding fees, on 30-year fixed-rate mortgages, the most commonly used home loan, averaged 5.85 percent last week. And the buyers have taken notice.

Bill Panici of Weichert Realtors had an open house at 522 4th St. SE this past weekend. More than a hundred prospective buyers walked in. By Wednesday, he had multiple offers and got a contract 15 percent above the asking price. "It is still a seller's market," says the veteran real estate broker, citing low house inventory in the DC area.

However, not everything is selling, and buyers start to gain some ground, according to real estate brokers.

"Sellers have gotten too ambitious after seeing what prices their neighbors are getting," says Bob Williams. "As a result, some houses stay in the market a few days longer, or even have to come down in price in order to sell."

Mr. Panici agrees.

"You need to price your house properly even though it is still a seller's market." §