Hipchickindc is a licensed real estate broker. She is the founder of 10 Square Team and is affiliated with Keller Williams Capital Properties. 10 Square Team is a popville.com advertiser. 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: 1432 Florida Ave NW
Legal Subdivision: Old City #2
Advertised Subdivision per Listing: Old City #2
Bedrooms: 2 Baths: 2 Parking: Street
Living Area Square Footage Per Tax Record: 1491
Original List Price: $699,000.
List Price at Contract: $689,000.
Days on Market: 29
Settled Sales Price: $677,500.
Original List to Final Sales Price Ratio: 96.92%
Seller Subsidy: $0
Settlement Date: 9/13/2013
Bank Owned?: No Short Sale? No
Original GDoN post is: here.
The listing can be seen: here. To see pics, open the link above and click on the camera icon to scroll through pics.
Over the past year (August 2012-August 2013), DC real estate listings across the city sold for an average original list to final sales price ratio of 98.11%. In June 2013, we saw the highest peak in list to sales price ratio for all of DC over the past five years at 100.26% (probably longer than five years, but Real Estate Business Intelligence data only compares up to five years back). This peak would have reflected properties that went under contract the month before in May, at which point interest rates were still below 4%.
On June 27th, 2013 mortgage interest rates for 30 year fixed products jumped from sub 4% to 4.46%. They have not dropped back below 4% since.
Considering that the historic average for a 30 year fixed rate mortgage is 8.68%, current interest rates remain extremely affordable in relation. On one hand, the rise in mortgage interest rates has perhaps encouraged buyers to take advantage of the low rates before they go up much more. Sellers seem to have gotten the message that prices may eventually be affected by the increase in interest rates, and we saw the number of listings go up city wide in August 2013 by 17.68% in relation to August 2012 (752 new listings in August 2013 compared to 642 in August 2012).
Of course, there are other factors that contribute to the pace of the market and market prices, such as absorption rate (how many new pending sales), months worth of supply, and the number of active ready and able buyers.
Looking back over the past few months worth of Good Deal or Not Revisited (GDoN-R) posts, we’re still seeing a fair amount of competition and escalated prices. As we enter into the winter months, I’ll be closely watching for shifts in levels of inventory, days on market, and original list to sales price ratio.
The listing agent was Ally Behnke of Stages Premier. The purchaser was represented by Morgan Knull of RE/Max Gateway, LLC.