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.
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