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 princeofpetworth.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: 3807 Kansas Ave NW
Legal Subdivision: Columbia Heights
Advertised Subdivision per Listing: Columbia Heights
Original List Price 1st Listing: $669,900.
List Price at Contract: $669,900.
List Date: 11/11/2011
Days on Market: 9
Settled Sales Price: $660,000.
Settlement Date: 12/28/2011
Seller Subsidy: $17,500.
Bank Owned?: No Short Sale? No
Type Of Financing: Conventional
Original GDoN post is: here.
The listing can be seen: here. To see pics, open the listing link, click on the main pic and scroll through.
A couple of weeks ago, Good Deal or Not Revisited (GDoN-R) looked at the sale of a home in Shaw that sold at the high end of comps for the area. I mention that post because, although it is a different location than the current subject property, it was also a home that was purchased in bad shape, renovated within a very short period of time, and sold at a strong price after just a few days on market. I noted a recent article in that post that cited lack of inventory as playing a role DC’s unusually active (compared to many other parts of the country) real estate market.
In keeping with that theme, Real Estate Business Intelligence (RBI, which is the stats arm of our local multiple listing service, Metropolitan Regional Information Services) blogged about the inventory of active homes for sale in the DC Metro Area as being at the lowest level since August 2005. Anybody who was in the real estate business then, or was looking for a home in August 2005 knows that is extremely low. There are currently a grand total of seven active listing for houses in the Columbia Heights neighborhood (let’s say the legal subdivision of Columbia Heights west of Georgia Avenue), which covers a fairly broad geographic area.
Continues after the jump.
This discussion naturally leads to how scarcity of inventory will affect prices. Following the above mentioned RBI blog post, there was some response from the folks who track foreclosure inventory that regarded the overall low inventory as a temporary condition created by restrictions in foreclosures related to robosigning controversies. To look at concrete numbers, in this specific location (let’s say the legal subdivision of Columbia Heights west of Georgia Avenue), there were a total of 33 foreclosure sales in 2010. In 2011, that same area saw settled foreclosure sales decrease to a total of 14. RBI followed up their post about reduction in overall inventory with a post showing a county by county break down of the foreclosure inventory.
There has been concern for years in the real estate industry of the looming “shadow inventory”. This refers to the possibility of a bulk of foreclosures finally getting processed and released onto markets all at once. I’ve personally never felt very strongly about this threat to the District of Columbia real estate market.
So, back to that question of whether low supply will affect prices. Once again, we have a subject property that has sold at the high end of the immediate comps, within a very short period of time. It will be interesting how things go as the Spring listings start popping up, but with interest rates hovering around 4%, my guess is that we’ll maintain low supply/high demand for a bit. Those who were around in August of 2005 will remember what that means.