I am no expert, but if you are looking at Silver Spring, be prepared to pay about the same thing you would in NoVA. Maryland (Montgomery County especially) prices are high. If your goal is to put up some money, even in an expensive area (i.e. anywhere around DC), I think demand will be about the same for MD and VA. I can't predict what the market will do in a couple years (that's what investing is all about!), but from what I've seen, there is no sign of a slow-down in the near future.
I bought a house last November in Germantown, MD for $201K. It is a piggyback townhouse, end unit, two bedrooms, 1 full, 1 half bath, tiny front yard - maybe 1200 sf. Not much for 201K. But, we saw an identical unit listed recently for $288K. $87K profit in 8 months! Pretty nice, although we are planning on living there for a few years.
If it were up to me, I would predict a continuation of the high demand at least for 3-5 more years. That means real estate in places as far away as Harrisburg, PA and Charlestown, WV could see dramatic increases in value - as they already have been over the past few years.
BUT!!! I am more conservative in my investments, and buying real estate that far away from the huge job base (DC area) could be risky. If demand decreases, AND IF INTEREST RATES RISE, you could have a tough time unloading a place in WV or PA.
Here is the key, IMO. Right now, the economy is growing - slowly. But oddly, interest rates (mortage rates) have not been increasing.
But they will. Only time will tell when. And when they do, decreased demand is going to stop the ridiculous increases in home values. It probably won't drive prices down - for a while - but people who snatched up real estate in certain areas may have a hard time selling.
My theory is that demand will always be present in the DC area. There are a ton of jobs that pay buku dollars. And the people that make that much money don't always mind spending extra money for gas & auto maintenance, and wasted time commuting. But that has to reach a point. Either the jobs start decentralizing, or the people start relocating.
My advice? (at least for the DC area)
If you have the financial backing, and are willing to accept moderate risk, buy something close to DC (MD, VA). But watch the market closely - as soon as rates start rising, you may have a hard time selling it; which you don't really want to do before two years anyway to avoid the capital gains penalty.
Just remember the words of Mr. Buffett, "Bulls make money, Bears make money, Pigs get slaughtered."
I know nothing about other markets in the US, and like I said in the beginning, I am not an expert.
Just my
