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.