According to Clear Capital, Washington DC area real estate prices will rise 6.5% in 2011 following a rise of 5.3% in 2010. The report was prepared by senior statistician Dr. Alex Villacorta.
“Some housing markets are well on their way to recovery, while others are experiencing a renewed downturn reminiscent of the housing crash only two years ago,” added Dr. Villacorta. “Understanding which path a given market is likely to follow is dependent on several key factors, but the two clear drivers are local unemployment rates and the prevalence of distressed homes.”
The Washington DC area already has the lowest unemployment in the nation and very low distressed home inventory compared to the rest of the country. According to Villacorta:
“Major cities in the western Gulf states, and Washington, D.C. are least likely to see high dollar declines in home values. Washington, D.C. follows-up its strong performance in 2010 with an expected 6.5 percent year-over-year price change in 2011.”
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Read the full report here Newsroom at Clear Capital : Market Report
