Continuing to examine and hold a lively discussion of the Northern Virginia Real Estate market.
Please post your local house search updates, MLS finds, on-topic ideas, and links here.
http://franklymls.com/DC7515907wow.400 DOM, Asked 149K, sold for 82K, and the tax assessed was 259, which i hope was the assessed value for the building.Somebody had split the place into a condo, 1/1 82K is a decent price for a 1BR condo, i saw some doll houses on Florida at 9th st for 99K, but neededing work. Obviously someone put 15-20K into this one, and just lost their ass.
http://www.washingtonpost.com/blogs/where-we-live/post/washington-real-estate-inventory-falls-to-lowest-levels-since-2005/2012/01/10/gIQAVe75nP_blog.htmlDid you see many homes for sale last month? Me neither.It’s not just the usual seasonal slowness. According to a report released Tuesday morning from RealEstate Business Intelligence, the region’s inventory of homes for sale declined 22 percent, to 10,584, in December 2011 compared to the same period a year ago.That’s the lowest inventory the region has seen since 2005.There is some good news: according to the RBI Pending Home Sale Index, one in 20 active homes for sale is a foreclosure, an 11-percent decrease from December 2010.However, the data does not show that the region is out of the woods. The number of short-sale homes, or homes where debt owed on the home is greater than the worth of the home, increased in December 2011 and comprised nearly 23 percent of the market, a figure that remained essentially flat from a year earlier.Overall, the region’s median sale price fell 3.6 percent in December 2011, to $325,000, compared to a year ago. The number of closed sales rose 1.7 percent.The Washington region’s real estate market has fared better than other major metropolitan areas during the economic downturn, and certain neighborhoods within the District and Northern Virginia have seen prices climb back from their lows during the housing crisis. However, other areas of the region continue to struggle.RBI, a subsidiary of MRIS, the region’s multiple listing service, forecasts that “upward pressure on prices will continue in 2012.”The Index’s market area includes the District and Montgomery, Prince George’s, Arlington and Fairfax counties; and the cities of Alexandria, Fairfax and Falls Church.
http://realestate.yahoo.com/promo/has-the-housing-market-finally-hit-bottom.html"As for the areas where prices may actually appreciate the most this year, the firm expects Orlando, Fla. home prices to rise 11.7%, hard-hit Bakersfield, Calif. 11.1%, government jobs-driven Washington, D.C. 9.3%"While I am cautiously optimistic for DC in 2012 (and for 2012 only) I gotta call BS for this +9.3% prediction. My best guess is 0 to +2% increases for 2012, with +5% being my high end...but plus +9.3%? I would certainly take the "under" on that bet.
Federal payraise is 0.5%, i hear.
http://franklymls.com/DC7725017assessed 254K, peak list 275Kdropped to 187K, bid war to 200Ki saw this place, no basement, kind of dumpy, no backyard. ancient mechanicals, no parking
Regarding Georgetown from a broker, "Like many area brokers, I thought Georgetown was one of the micro-markets in the country that was actually increasing in value.""Ah, but the numbers! They say something quite different.""Here’s what I noticed: ●Of these, 22 out of 29 sold for less money in 2011 than they had in earlier years. ●The average loss was 6 percent. ●18 of the 29 homes needed to reduce their 2011 asking price before they attracted an offer.●Only one of the 29 homes sold at the asking price. All the other sellers accepted less than their asking price.●None of the 22 homes that sold at a loss went as a foreclosure or short sale."See also: "The median price was the lowest during the past five years, at $1.2 million.""Last year, it took homes longer to sell than in past years. The average home that sold spent more than four months on the market. And this does not include most of the 85 homes that were taken off the market without selling."http://www.washingtonpost.com/blogs/where-we-live/post/georgetown-home-prices--the-reality/2012/01/12/gIQAjnHJwP_blog.html#http://www.washingtonpost.com/blogs/where-we-live/post/georgetown-report-from-pat-kennedy/2012/01/03/gIQAQWPvaP_blog.html
I'd be happy with 3% this year! We all know that there will be huge variations in this region.
Schiller on how to tell which neighborhoods will hold their value: http://www.bankrate.com/finance/real-estate/neighborhood-holds-property-value-1.aspxAnything sound familiar?
http://www.washingtonpost.com/blogs/the-state-of-nova/post/reston-a-soulless-ant-colony-columnist-says/2012/01/13/gIQAS6FGxP_blog.html?hpid=z15reston the soulless ant colony.
Madison: minor point, but that's a different Schiller. Regarding jobs, a major head-wind will be the defense and civilian budget cuts.
http://www.washingtonpost.com/investigations/in-dc-loan-program-mortgage-defaults-abound/2011/11/29/gIQAPt4Z1P_story.html?hpid=z1"Nearly one in five buyers participating in the city’s 35-year-old loan program for first-time homeowners is behind on mortgage payments, city officials said — a default rate that’s at least three times higher than the overall rate in the region. "layering debt on debt is us tno formula for success.These are working people who just can't handle the debt loads.
"Sharon Mitchell bought a $399,000 house in 2008, drawn to the new Southeast development. Even with a $77,000 second mortgage from the city and $84,000 in equity from the Housing Authority, Mitchell’s payment on her $251,000 first mortgage is $1,600. When the city’s second mortgage becomes due in about a year, Mitchell will have to pay an additional $160 a month, records show.Before she bought the house, Mitchell had been paying $900 a month in rent. Loan officials had estimated she could afford a house priced up to $178,000, records show."SO this lady was paying $900/month in rent but buys into the whole home debtor thing now she's looking at 1800/month in mortgage payments plus maintainance.What was the problem with renting?
pat,I'm afraid your straw-man posts are falling on deaf ears. Who here has ever advocated that someone buy a home they can't afford OR that renting is not the best option for some people.As you would see, had you looked at any lower income areas, the former homeowners are once again renters.
cherylThere is a surprising number of people who think the american dream requires owning a home.with the lousy yields on real estate, frankly, it's a pretty poor investment and can easily become a boat anchor.now, if you know you aren't leaving the area for a while, and the breakeven between rent and PITI is there, then sure.but, there are many lessone remaining for people.All those underwater homedebtors between 2005 and 2008? They can continue servicing underwater debt for another decade, and go without 401K and other savings....certainly the banks don't want them to ever consider walking away and going back to renting.
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