Market slowdown?
I decided to look back at some of the houses I reviewed back in January of this year and compare them with the DC Government's Real Estate sales database, which covers things sold up to mid March, and what I found makes me question the hot market. Of 6 houses that had open houses in early to mid January, 1 sold. The one house that did sell sold for $30K less than it's listing price, for $430,000.Of course the market is kinda slow in Winter. Then there were houses that were just plain overpriced. I mean I like Truxton and the surrounding areas but anything over 1/2 a mill has got to be one hell of a house. The neighborhood is still lacking in some areas. The things people want like a choice of restaurants, good parks, street corners without drug dealers, will come in time, but are not here now. So the prices should reflect that those things are currently lacking.
Of course, the houses that haven't been listed as selling could be under contract. Possible. It would be interesting to see what price is the selling price. Are houses selling below the asking price? Are any above the asking price and by how much? What is the market saying? I guess I'll have to wait to find out.
posted by Mari @ 26.5.05
6 Comments:
Some data: We bought one, listed for 475, for 412, in late December. It was on the market for 45 days. In March we bid on one, listed at 439, for 539, and lost to a cash buyer who allegedly bid a little less. THe nice one down the street from us, (w/o AC) listed for 459, sold for 429 in 30 days, and 2 others came on the market and went off, though we dont know what happened.
Alexandria is still pretty absurd. Although I'm looking mostly at the low end of the market. Ie, the under 300k condo's. My zip code is hard to work with, as Cameron Station is next door. And people apparently have an insatiable appetitie for new construction town homes.
But the same condo's being listed for $250 to $290 depending on the building at Christmas, are still in that price range.
I'm actually happy the appreciation is slowing. I might be able to pay my tax bill next year without crying.
I think there is a slowdown of sorts but also a lot of properties are being well overpriced.
On my street, M, there have been 6 properties put on the market this year. Ranging from 599,000 to 850,000. Some are very nicely done, some are not but none are worth what is being asked.
When there's a top end Safeway a block away and restuarants just as close some of these will be worth it but for now its just not there.
Oh, and none of the 6 have sold.
Liz,
There is that moment when you look at sales prices and go, wait a minute, this will raise my taxes!. Being right next to Yuppieland (Cameron Station) village can skew numbers a bit, by not reflecting the realities of a MS-13 hangout just outside its gates.
G,
It is hard to tell what makes people crazy and bid up and what allows you to bid down when houses and blocks are so uneven. What's the discount for having crackheads next door, or what's a backyard big enough for a garden party AND a Mini Cooper worth to add on to the price. Assessors do have a formula relating to yard and square footage but it's not all square footage and mechanics (AC). Well we'll see in the end what some thing sell for.
But then again, I notice not everything sells. I know of a few where the owner didn't sell because they didn't get the price or found value in keeping it or decided to rent it out.
The thing about bubbles is that they either burst, or slowly deflate. Slow is better. Remember that selling a house in 1 to 2 months is, in most places, perfectly good & fine. DC is better off if things drift back to that state of affairs.
Though I'm glad I sold when I could do it in a couple of days w/ competing offers.
from my observations, buyers seem to be more sensitive to value in our area. probably because of the issues previously mentioned (crackheads, loitering, litter, no cool bars/restaurants, etc), they are really expecting a nice place for that kinda money. Some of these properties I've seen on this blog & elsewhere lead me to believe alot of sellers think they can price a P.O.S. the same as a really nice refurb. It's like they just look at the size, number of bedrooms/bathrooms, & price it the same as one matching those details, but that is completely, professionally renovated. I think buyers can tell the difference between a quick flip & sell vs. a total gut & rebuild.
I was hoping to see values climb faster & homes sell quicker here than they are, but I'm in it for the long run so I'm not too worried.
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