Good Deal or Not? “wine cooler” edition


This house is located at 1910 4th St, NW:

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The listing says:

“Enchanting as peak cherry blossoms.Flawless total renovation of a 3br/3ba porch front classic.Mouth-watering epicurean’s kitchen w granite counters,island & wine cooler.Show stopping master suite has a double vanity bath wi private toilet rm.Marble baths,hand crafted built-ins & chic desk niche. Pristine private deck & terrace oasis. Separately metered luxury income unit w complete gourmet kitchen”

You can see more photos here.

This 3 bed/3.5 bath is going for $789,900.

30 Comment

  • I’ll rent the income unit! Very nice.

  • great porch great location. great house. great neighborhood.
    and a rental unit?
    too spendy for me, but i like it a lot.

  • I dunno. I few months ago, I would have thought this price way too high. Over $600 a square foot used to be a Dupont/Logan-thing, but now it’s common all over. With the very nice rental unit, very high demand, and very low supply, I think it’s probably priced right for this market. Watch out if interests rates rise by a lot in a few years, though.

    • I don’t see how the (imminent) rise in interest rates would spur you ‘watch out’ , explain?

      • Low interest rates allow buyers to afford “more house” for the same monthly payment, so if the interest rates raise significantly, prices could drop because less buyers (particularly government employees) will be able to afford houses in the 550k+ range. Right now, people are throwing money around because the rates are so low. The high demand, coupled by low inventory, has raised prices significantly in DC over the last 1.5-2 years. Whether the new price points are sustainable with higher interest rates (or whether interest rates will ever go up significantly) is yet to be seen.

        • seeing that interest rates (seemingly) can’t get much lower, do you think that with the influx of thousands of new apartment units will have it’s own and greater affect on calming the market? Given the crunch of government that we are/will be experiencing, I sense a adjustment.

        • Ah ha…someone who gets it. People either don’t seem to understand or simply ignore the effect interest rates have on affordability. The general rule of thumb is that the average person with average credit loses $50K of purchasing power for every 1 point increase in interest rates.

          Rates for the uninitiated are being help artificially low by the Fed and have been since the great recession started. That will end when the economy is in a little better shape, and in fact the Fed has all but said 2014 is when it ends.

          30 yr rates will rise from the 3.5% they are now to 5-5.5%, which is still low by historical standards, but still 2 points higher than now.

          When that happens, the person who qualified for a 700K loan at 3.5% can now only qualify for a 600K loan. This reduction happens for every level of income and the pool of people who could afford to buy your place now just got drastically smaller. Price reductions follow.

          Tie this to the fact that DC’s halcyon days where limitless federal money was pouring into the local economy is stemmed, and all of a sudden the house you just paid 780K for in this neighbohood is now worth 650K.

          • Certainly a concern for someone who is planning on selling again in the near term. But is it so dire for someone who intends to live in the house for 10+ years? Who knows what the future holds. But if one is looking for a home rather than an investment, one has to deal with the conditions of the today rather than the tomorrow. It just depends on what is the underlying motivation for the buyer. Prices most likely will adjust down in the near term, but not to the extent of pre-rehabilitated burned out from riot left to rot days of the not too distant past. Over the long term, prices will continue to trend up with continued development. Perhaps in fits and starts but up nonetheless – over time.

          • While increased rates may drive the price of a home down, it’s not totally clear what will happen. Increased interest rates strongly imply increased inflation, which means that rent will GO UP!! So being locked into a fixed payment on a nice home might be the best play. Plus, values will continue to go up over time because rents will almost certainly keep rising (they almost have to given the tons of $$ the Fed is dumping into the system, driving the dollar down).

          • Interest rate guy…

            High interest rates actually do NOT imply high inflation, although we often observe them at the same time. This is what people remember from the 1980s.

            If the fed plays its cards right (and they are basically gambling here) the rate raises will kill off the inflation before it starts.

            As someone who already owns a house purchased when rates were 5.5% and refinanced when 30 year fixed hit 3.5% I am totally rooting for inflation. Inflation would be awesome for me. A good dose would make my mortgage payment basically nothing.

            But I don’t see it coming. All the inflation doomsayers have looked rather silly for the past 4 years. It seems the fed might actually know what it’s doing.

            Joker generally seems to have a good grasp of economics and the housing market, in my opinion.

            Call us bearish on DC real estate.

          • Or it is possible for a new income bracket to move into that neighborhood; and, consequently, prices may not increase but may not fall either.

        • Anon,

          The average home owner moves every 5-7 years, less for condo owners, and less for folks 35 and younger.

          The facts show us that yes, someone people do buy with the intent to stay for the duration of their 30 year loan. The fact is, you have a lot of late 20’s early 30’s couples or well off singles buying homes like this in DC, and the chances of them not moving for a job, family etc in the next 5-10 years is pretty slim.

          Everyone I’ve met who bought a house or condo in DC the past few years did it because it was a “great investment”, but really had no plans on staying long term. To top it off, none of them had recognized or considered it costs 10% in fees, taxes and commissions just to sell a place.

          The only point I am trying to make is DC real estate is already future priced to the hilt and anyone not in what one would consider a typical safe and real estate immune neighborhood should really think about what happens when this fiscal and interest rate bubble we’ve been living in for the past 5 years deflates.

          • My anecdotal evidence is at complete odds with yours. But that’s the thing with anecdotes – they’re not QED’s.

          • Dude,

            His facts are not anecdotal. The average homeowner DOES sell in about 5-7 years. That number comes from banks, who count on that when determining how many loans to make.

            He has a very good understanding of the real estate market.

            Buying anything west of Georgia Avenue, South of Florida and west of the Anacostia is no longer likely to make you any money. And as he says buying anything else is a real gamble under current economic conditions.

            But don’t worry. Buy the house. What could go wrong?

          • “Everybody I’ve met” is anecdotal. Just as is my experience, including my own circumstance, that everybody I know has bought or is planning to buy for the long term. As I initially said, it depends on what your plans are in determining if you will place greatest weight on purely investment concerns or if you will favor those that make your purchase a home. I did not discount anything Joker said, but it is neither universal nor necessary for every buyer. Dude.

  • Wow. I had a contract on this house last year and backed out of it. It’s amazing how much work they did to it. Really great remodeling job.

  • Beautiful renovation, but if I’m paying $700k, I want a guaranteed parking spot. Seems like this is street parking only.

  • Niiiiiicccceee. Love the rental unit renovation work.

  • novadancer

    really? I’m the only who thinks it’s overpriced? Sure it has a 1 br rental, but that doens’t seem like that much space (just 2 bedrooms).

  • This was a total S-box beforehand. They really did some good looking renovations from the photos. appliances are a bit blah for a 700k house, but overall looks pretty nice. street parking is around the corner I think.

  • Nice reno–I’d hit it!

  • At last!! a renovation by someone who understands that “open” does not mean “wall-less”. Whoever renovated that roller rink featured a couple of weeks ago (I think it was the “wider than usual” edition or something like that) needs to take a look at this.

  • Really nice. I like how they utilized the space in the kitchen.

  • It’s a gorgeous reno. I love the open shelving between the dining and living rooms. I want to steal that idea!

    I wonder how much rent you could bring in. According to Redfin, the basement is less than 600sqft, but it is very nicely done. It’s a huge plus that it’s already separately metered.

  • Did it sell already?!?! Where’d the listing go?

  • Good deal, but that’s one of the louder streets in the area due to Howard Hospital ambulance traffic.

    • As a fourth st resident just 1 block south of this house, with crappy windows and a master bedroom facing 4th, it’s amazing how quickly you get used to ambulance sirens. Also, the ambulance traffic mostly happens during the day.

  • not in that neighborhood…way over priced!
    and isn’t this the area the floods with sewage?

    • no. The area that floods is in a trough on Rhode Island Avenue between 2nd and North Capital. That is a low are.

  • and it looks like it has a nice crack in the retaining wall out front.

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