Does traffic affect real estate in Washington DC, of course it does! We plan our lives around traffic, we look for the best routes to get where we are going, we think about the best times to come and go, we telecommute to beat traffic, we move into the city to beat traffic, and we work late to avoid rush hour. We do anything we can to avoid traffic! Read the rest of this entry »
I could tell you how Washington DC had an influx of population in 2009. I could tell you how strong the job market is in Washington DC. Or I could even tell you how real estate prices were up 2.9% in Washington DC last year. Instead I am going to regale you with some anecdotal stories to illustrate what is going on here in the real estate market. Read the rest of this entry »
Hey Chicken Little, the sky is not falling in Washington DC!
Everyone Just Figured Out Washington DC Is Not A Declining Market!
A few of the major mortgage insurance companies just announced that they have taken Washington DC off their declining markets list. Read the rest of this entry »
I saw a house recently that was priced at $659,000. This house had been on the market for 60 days, with no offers, at $659,000. I noticed that they did a price reduction of $10,000 to $649,000 after they were on the market for 60 days. And this begs the question, "is a '1.5% OFF SALE' going to draw buyers into the store?"
I believe a $10,000 price reduction is a slap in the face to the marketplace, to potential buyers, and to logic. If the house was not worth $659,000, guess what, it ain't worth $649,000! Read the rest of this entry »
Buying distressed properties, whether they are in foreclosure or are a short sale, can be difficult. I am going to cut and paste an email from a prior client in relation to this topic, and my reply, as an example of how difficult it can be to buy distressed properties: Read the rest of this entry »
Has anyone else noticed that buying new investment real estate does not cash flow? At today's prices, which are likely lower than in the last several years, you still seem unable to find real estate that can turn a profit as a rental property. I wonder why that is? Read the rest of this entry »
The statement that all real estate is local is shown to be true by taking a look at the Washington DC real estate market. This is the market I work the most in mortgage business, and I see the data first hand. Real estate prices seem to be holding up except for a few pockets in some neighborhoods on the edge. Condo sales, as an example, are way up, a 34% increase for 2009! Read the rest of this entry »
When you decide to sell your home you usually think you have a fairly good idea of what its worth, after all, you live in the neighborhood! Most of us schedule appointments with three local listing agents who we know, or we have been referred to, or maybe we have been getting their marketing material in the mail. Usually each Realtor will recommend a different sales price. Sometimes those prices are close together, but usually there is one or more Realtors who give you a much higher number, that excites you, and seems to agree with what you thought your place was worth. But, if this is the case, how is it that most homes seem to sit on the market for a long time, and end up getting the price dropped one or many times? Is it just due to a slow market? But even in a slow market won't just about anything sell if its priced right? The problem is most of us are convinced our house is worth more than all of our neighbors, for varied reasons. Read the rest of this entry »
Should I Buy Now And Avoid Higher Interest Rates?
This is a common question I get. Potential home buyers will worry that rates are going to spike, after all, "how long can they stay this low," goes the logic. So some buyers assume they should buy now, at any price, and avoid a future rate increase. I am not sure how long rates can stay low, they have been low for almost two decades in Japan! But, I thought for fun, we'd look at some different numbers. Keep in mind the below are based off of broad assumptions of my own:
Buying a three bedroom house today, in the Washington DC Metro area in a good neighborhood, let's assume costs $700,000. Further, let's say the buyer is ecstatic to get a rate of 4.875% on a 30 Year Fixed Rate mortgage, and that they have a 20% down payment. Should the buyer be ecstatic? Read the rest of this entry »
If you were rich, would you buy a huge, expensive house? Would you spend $39 million on a house?
I did a search for the most expensive home on the market in Washington DC, and came up with 1623 28TH ST NW, WASHINGTON, DC 20007. The asking price is $39,500,000. I have a lot of questions…
How do you come up with that asking price? Are there really comparable sales that can support a price of $39,500,000? Or are you pricing it to sell to a developer, and estimating the value as a developer would? Read the rest of this entry »