Prince Of Petworth » Good Deal or Not Revisited by hipchickindc

Good Deal or Not Revisited by hipchickindc

In real life, hipchickindc is licensed as a real estate broker in the District of Columbia and Virginia, and as a real estate salesperson in Maryland. 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: 2017 Kalorama Rd NW #1

Original List Price: $594,900.

List Price at Contract: $475,000.

List Date: 09/05/2008

Days on Market: 94

Settled Sales Price: $450,000.

Settlement Date: 01/23/2009

Seller Subsidy: $1,650.

Bank Owned?: No

Recent Purchase and Re-Sale: No

Original GDoN Post is here. Continues after the jump.

Listing History and Current Listing can be found here. To see current pics, scroll to last version of listing and click the filmstrip icon at top left of that listing.

Located a stones throw from Connecticut Ave NW, in a lovely Victorian rowhome with only three other condo units, PoP commenters debated how desirable this 2 bedroom duplex was, given that some of the space is at basement level. In addition to location, the unit has some nice features including high ceilings, 2 fireplaces, a patio, and a parking spot.

I found the property history to be quite interesting.

12/31/1998 Back in the day

A mere nine+ years ago this unit sold for $181,000. with a Seller subsidy of $1800. It had been on the market for 167 days.

2001

An attempt was made in August of 2001 to list at $339,000. It was withdrawn and re-listed in September 2001 for $299,000. It sold after 69 days on market for $292,500.

Averaged out over the 7.25 years between sales, even considering a probable dip in value from the height of the market, that’s close to $20,000. appreciation per year.

Category: GDoN revisited

By: Prince Of Petworth | 05 February 2009 11:35 PM | No Comments

hipchickindc

Sorry, link to original GDoN doesn’t work above. Here it is:
http://www.princeofpetworth.com/2008/11/good-deal-or-not-wed-condo-porn-edition/

February 6, 2009 at 6:49 am
Jamie

The history makes perfect sense based on the overall real estate market in this part of DC in that time frame. Prices started to take off around 1997-1998, peaking around 2005-2006. In 1998, a typical townhouse in Mt. Pleasant would sell for $250,000-$325,000. A the peak of the market that same house might have sold for $850-$900K.

This condo probably would have sold for $550-600K in 2004 or 2005. The period from 1996-2006 was an extraordinary boom in DC. Real estate values nationally went up a lot, but DC in particular saw dramatic changes in livability and desirability which pushed housing prices more than the national average. I doubt we will ever see that much appreciation in that short a timeframe again.

February 6, 2009 at 9:32 am
hipchickindc

Hi Jamie.

I agree that we will never see that sharp an appreciation curve again. My thought, though, was to highlight that even though the market has come down from its peak, someone who had invested in real estate for a few years, is likely to see appreciation and return on investment.

Yes, gone are the days of buying and making a six figure profit a year or two later.

February 6, 2009 at 11:22 am
bogfrog

Wow, that’s extremely interesting. I like the market insights and insider’s history! I once looked at a rental on this pretty block. Recently, a friend of mine looked at this unit (note that she is impossible to please, though — she hated it). When I look more carefully, I think I like it a lot — didn’t originally realize it included parking. So you have the front view onto Kalorama Rd from the LR — very nice –, while the kitchen, 2 bedrooms, and 2 baths are downstairs with an opening to the sunny little patio. I think there’s extra usable space in there too. It seems like $450 (including parking) is a good deal for that location, at this time (compared to the $515K prices this friend is considering paying nearby). The boom Jamie mentions and sales history is very interesting.

February 6, 2009 at 11:56 am
hipchickindc

Unfortunately, the wider media tends to focus on whatever the latest freakout number is and no sense of context presented.

February 6, 2009 at 12:41 pm