D.C. One of Two Cities Where Housing Prices Increased in 2011

Rising home values contribute to gentrification, and D.C. remains one of the only cities on the S&P/Case-Shiller index where housing prices increased in 2011, according to data released Tuesday. The other city is Detroit, where the recession caused steep declines in home values that are now beginning to rise again.

Home prices dropped by 3.4 percent nationally, while they increased by 1.3 percent in D.C.

Experts have said the Washington market, which includes D.C., suburban Maryland and Northern Virginia, tends to be insulated from the rest of the country due to the federal government’s positive influence on the job market here. However, with federal spending under a cloud of uncertainty, experts have also warned that D.C.’s economy will also suffer as a result.

Read more at: washingtonexaminer.com