GDoN Revisited by Hipchickindc – 1307 S St NW

Voted one of the best real estate agents in DC by the Washington City Paper Readers’ Choice Poll in 2009, hipchickindc aka the not-so-hip Suzanne Des Marais is an Associate Broker with Urban Pace. She lives (and sells a lot of houses) in Bloomingdale, but works all over DC, with everyone from first time buyers to highly regarded developers. Unless specifically noted, neither she nor the company that she is affiliated with represented any of the parties or were directly involved in the transaction reported below. Unless otherwise noted, the source of information is Metropolitan Regional Information Systems (MRIS), which is the local multiple listing system. Information is deemed reliable but not guaranteed.

Featured Property: 1307 S St NW
Legal Subdivision: Old City #2
Advertised Subdivision per Listing: Dupont Logan U St
Original List Price: $989,500.
List Price at Contract: $889,000.
List Date: 09/10/2010
Days on Market: 126

Settled Sales Price: $840,000.

Settlement Date: 02/14/2011
Seller Subsidy: $10,000.
Bank Owned?: No Short Sale? No
Type Of Financing: FHA

Original Good Deal or Not post is: here

The listing can be seen: here. To see pics, after opening the listing link, click on the main pic and scroll through.

This listing stirred a discussion among commenters to the original Good Deal or Not (GDoN) post regarding whether DC real estate prices are swelling to bubble proportions. Elmer Fudd Gantry pondered, “The DC housing market may be overpriced, but I guarantee someone will shell out at least $850,000 for that location and a rental unit. I’m not saying it’s right, but that’s the way it is.” The Purchaser ultimately paid a net of $830,000., so not far off.

Continues after the jump.

Not always a desirable location, this home sold in 1996 in fixer upper condition for a mere $81,000. Without figuring in the costs to update over the years, that’s a tenfold increase in 15 years. The recent seller bought in 2002 for $409,500., so those folks really only doubled their initial investment. Still, that’s not a bad deal considering a market that peaked and dropped in between. (Really, it’s not, especially when you consider that a normal rate of appreciation is around 3-5% per year under healthy market conditions.)

For anybody who is lamenting their chance to make a real estate investment like this, it’s worth considering lower priced neighborhoods with solid housing stock that may not seem so hot right now. I sure don’t envision the population of DC decreasing in the near future. That means that demand will continue to outpace supply, which is the basic formula for appreciation.

5 Comment

  • Would have gone for more had they cleaned it up a little and had a decent agent.

  • I agree with all that. The population is going to explode here. I also think homes in less established neighborhoods should also rise more quickly. Anacostia > H Street > G’town from a pure appreciation perspective.

    I can see why people have qualms given the events of recent years, but I really think we’re in the last generation of middle class folks who will be able to afford a proper house in DC. In 25 years, forget it.

    • You may be right about the “Anacostia > H Street > G’town” if you’re talking super long term, like 25 years.

      In the short term, like next 10 years, you can’t put Anacostia ahead of H Street.

      Prices in the vicinity of H Street are going to explode when that strip is completely done: when the streetcars are put in, and when the western end catches up with the eastern end (like, say, when the H Street Connection project is done and the new Giant).

      H Street now is like what 14th Street NW was 10 years ago, and look at the prices in that area now.

      • Prices in H Street are already pretty damn high. The thing is, those prices factor in something that prices didn’t 10 years ago: very good upside potential. People pay more for the promise of appreciation. This isn’t really a factor in Anacostia, being as stigmatized as it is. So you not only get the bad neighborhood discount, you get the bear-ish outlook discount — same as Shaw buyers of 10 years ago.

        Also, ist’s harder for home prices to rise above “affordable to median income folks”, than it is for prices to rise to that level. Once Anacostia drops the stigma, the class with the largest number of buyers (median income earners of DMV) will swarm 20020 like locusts. As they compete for newly discovered housing stock, prices will trend toward “affordable to median income folks”.

        I think where we differ is time frame, but we’re kinda just bullshitting anyway. Who knows what’ll happen? I predict the Hillbots (cyborg political automatons) take over H Street by 2050. All hail our future masters.

  • I saw the place, it was kooky. The agent’s not responsible for owners wacky taste. The agent was personable and knowledgeable. (no I’m not her or a friend)

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