“sales data from properties that are coming on the market now will start giving feedback in about a month in relation to the effects of this historic election”

gdon-r

Suzanne Des Marais is an associate broker with Bediz Group, LLC at Keller Williams Capital Properties . 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 and/or Smartcharts by Showingtime). Information is deemed reliable but not guaranteed.

Featured Property: 2422 2nd St, NE
Legal Subdivision: Brookland
Advertised Subdivision per Listing: Brookland
Bedrooms: 2 Baths: 2 Parking: Street Ownership: Fee Simple
Original List Price: $489,950.
List Price at Contract: $489,950
List Date: 09/28/2016
Days on Market: 2
Settled Sales Price: $515,000. (Net $499,550.)
Seller Subsidy: $15,450.
Settlement Date: 11/01/2016
Transaction type: Standard

Original GDoN post can be seen: here.

The listing can be seen here: here.

In reviewing the market history for the subject property, I happened to notice that the first transfer on record in the multiple listing service (which only started in its current form in the mid-1990’s) was on the 17th of September 2001…less than a week post-9/11. At the time, it settled for $53,000., which was $6000. over the asking price.

Agents working in DC post 9/11 will recall a huge sense of uncertainty that pervaded the market. Eventually, following 9/11, the DC real estate market returned to normal and continued to thrive as the District welcomed new residents. Many areas of the city experienced revitalization that began in the early 2000s.

From a market perspective, agents rely on what we hear from our peers about open house attendance, number of (or lack of) multiple offers, days on market, price reductions, etc. Statistical data, however, will always lag behind what we experience anecdotally. For example, we will never know the actual peak or valley of a market until after it has happened.

That said, the settled sales data from properties that are coming on the market now will start giving feedback in about a month in relation to the effects of this historic election on the local real estate market. We’ll be able to compare this year’s stats to numbers from the same timeframe of previous years. Inventory naturally shrinks during this part of the year, as potential sellers often hold off until after the new year (if we have a mild winter) or until Spring. I’m very interested to see how buyer behavior is affected, as we’ve continued to see high demand over the early Fall.

The listing agent for this sale was George Hockaday-Bey affiliated with All Service Real Estate. Sarah Brown, with Keller Williams Capital Properties (per disclosure above, the same brokerage affiliation as the write), assisted the Buyer.

2 Comment

  • There was a long period of stagnation in real estate prices through the 1990s in DC, with declines evident in the latter half of the decade following the turnover in Congressional leadership. the threat of government agencies being closed, as well as the nadir of the second Barry era contributed to the decline.

    Things began to pickup rapidly at the end of the decade, after the control board was in place and the initial talk (most of it empty) about drastic changes to the federal government passed. Even Bush II’s election did not affect this and there was steady appreciation through the early 200s. Despite the 2006-2008ish dip in prices, real estate is now worth quite a bit more than it was even 5 or 6 years ago. Weather this secular upward trend can be sustained is open to question, esp. if we see shifts in federal spending or volatility in the wider ecnomy. The change in administration also might impact the investment in property by foreigners which has helped drive up prices in a number of places in the US and Canada.

    Given the long trend upward and away from realistic affordability for many people, comparing the present with 2000 or even 2008 would be difficult because of the background trends—DC real estate was arguably undervalued compared to many other US large cities in 1998. It may be overvalued now.

  • I’m guessing things will be slow this winter on demand and supply side. But it will be at least a year until we see the direction of changes.