When Jin and Ding found the house they wanted in Bethesda, they made a bid just days after the house went on the market. But their Gaithersburg home, which went on the market in November, remains for sale. A number of factors are driving buyers closer to the city. John Tucillo, a consulting economist for the National Association of Realtors, cites the healthy economy and stock market. While prices of new homes in the outlying suburbs rose slightly last year, prices of existing homes remained stable, making them all that more attractive.
Agents say many are retirees or elderly residents moving to retirement communities.
Still others are families relocating to other cities for different jobs, or couples divorcing. Another group is buying new and larger homes, with about half staying in nearby neighborhoods and half moving further out, willing to endure a longer commute for a larger house. Lower prices in the District are the chief reason that Barbara and Stephen Tawes decided to buy a house in the city, just off Chevy Chase Circle, when they moved from north Rockville. We're out at least once every weekend and twice during the week. Before, it was once every two to three weeks, and only on the weekend.