tag:blogger.com,1999:blog-2095284393772305956.post8248381538966735889..comments2023-10-22T10:53:07.976-04:00Comments on 14th & You: Condo Under Contract14th & Youhttp://www.blogger.com/profile/10401615764637283832noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2095284393772305956.post-86902809513983733172008-06-11T15:43:00.000-04:002008-06-11T15:43:00.000-04:00Even though we hear how bad the housing market is ...Even though we hear how bad the housing market is elsewhere, DC is still chugging along very strong. <BR/>Condos priced at a far market value are selling extremely fast. Pretty much, and condo priced under $400k in one of the "hot" locations in DC will sell in no time. <BR/>Market value is determined by a mutual meeting point of buyers and sellers. It is an ever changing value, but one that historically increases by 3% annually.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2095284393772305956.post-61596923733613707142008-06-11T15:42:00.000-04:002008-06-11T15:42:00.000-04:00Even though we hear how bad the housing market is ...Even though we hear how bad the housing market is elsewhere, DC is still chugging along very strong. <BR/>Condos priced at a far market value are selling extremely fast. Pretty much, and condo priced under $400k in one of the "hot" locations in DC will sell in no time. <BR/>Market value is determined by a mutual meeting point of buyers and sellers. It is an ever changing value, but one that historically increases by 3% annually.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2095284393772305956.post-89018808341926057622008-05-21T18:06:00.000-04:002008-05-21T18:06:00.000-04:00Couple things, as someone who just bought in the n...Couple things, as someone who just bought in the neighborhood. Interest rates are way lower now, so your perception of how costs translated to salaries almost a decade ago aren't compatible. So a dual income household, of even "regular" salaried folks can obtain 400k if they aren't carrying much debt, fore go 2 cars, etc. Throw in the appeal of this area to the high salaried set and you see how the demand increases. <BR/><BR/>As for it being actually worth that, I'm of the belief that if your mortgage payment is within 85% of what a current rent payment would be for the same home then you're probably safe. The area is incredibly desirable and is on the minds of anyone who's been here a year or two.<BR/><BR/>Final thought, yes the older buildings are selling for less per sq ft even if they've been completely updated. I think this has to do with how developers carry debts on their books. An individual can sell for whatever they please, reduce price etc, as long as they can pay back their mortgage holder. A developer has to be careful about not underwriting debt so the 500+ per sq ft prices your seeing in big buildings is a reflection of their false assumption of where the market would be way back when they took out their loan. I think they think they can sit it out for a year or 2 till those prices are inline with inflation, but for the time being the older buildings are much better deals.Alexhttps://www.blogger.com/profile/01270309395263853805noreply@blogger.comtag:blogger.com,1999:blog-2095284393772305956.post-51531526226026221452008-05-21T16:14:00.000-04:002008-05-21T16:14:00.000-04:00Sorry if my comment was taken as snarky. I think y...Sorry if my comment was taken as snarky. I think your clarification of your original question is helpful. As you note, your thinking behind it was much more nuanced than your original entry conveyed.<BR/><BR/>I agree that some prices in these neighborhoods (in full disclosure, I live in Adams Morgan) are insane/unreasonable, and as we've seen, unlikely to be able to be sustained. <BR/><BR/>I paid $83,500 for a 500ish sq. ft. one bedroom condo in 1996, and it could easily go for almost $300,000 now. I love my place, think it's great, but there is no way I would EVER pay that kind of money for it. So, is $399,000 "reasonable"? Not to my mind, but again, if a buyer is willing to pay it, then perhaps it's reasonable to them.<BR/><BR/>I think eventually (though DC seems to be lagging behind the rest of the nation) prices will correct themselves. I've definitely seen a slow down in sales in my building/area, which is prompting reductions in the (inflated) selling prices.<BR/><BR/>I'm guessing the seller of this particular condo lucked out with a buyer who was 1) in a hurry 2) didn't do his/her research on the area or 3) is independently wealthy and blows his/her nose with $100 bills. (Had to throw in a little snarkiness for good measure...)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2095284393772305956.post-68122175434417631942008-05-21T11:45:00.000-04:002008-05-21T11:45:00.000-04:00Anonymouses...The snarkiness around here is gettin...Anonymouses...<BR/><BR/>The snarkiness around here is getting pretty thick. Clearly, since we operate this blog and live in the neighborhood, we have *not* been paying any attention whatsoever to the real estate market, and the fact that prices are what they are completely took us by surprise, made us smack our foreheads and exclaim "gee golly gosh" in a nice midwestern twang.<BR/><BR/>The question (as clearly stated in the post) was "is this a fair price for a (1 BR) in Logan?" As in--with prices starting to drop across the region (even in DC itself) is $400k a reasonable price for a one bedroom condo? Simply because someone is "willing to pay" that price doesn't necessarily mean that it's a reasonable price. And we're not saying whether it is or isn't; only that a casual perusal of real estate listings in the neihgborhood seems to show a number of 1 BRs going for less.Mr. Other Upper NWhttps://www.blogger.com/profile/12536367497290075887noreply@blogger.comtag:blogger.com,1999:blog-2095284393772305956.post-5523266413421563222008-05-20T21:24:00.000-04:002008-05-20T21:24:00.000-04:00Ditto what the previous poster said and also, what...Ditto what the previous poster said and also, what the previous owner paid in 2000 has nothing to do with anything.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2095284393772305956.post-49078859288141612222008-05-20T19:32:00.000-04:002008-05-20T19:32:00.000-04:00Ummm...what is your question? A condo in DC sold f...Ummm...what is your question? A condo in DC sold for (something around) $399,000. Is that a surprise? Have you not been paying attention for the past few years? If someone was willing to pay it, then that's what it's worth (at least to that person).Anonymousnoreply@blogger.com