Shaw condo drops $200k in value
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Anonymous
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https://redf.in/WUYnt5
Wow, this Shaw condo sold in 2019 for $1,050,000 and just sold again in 2024 for $850,000. Think this is representative of the broader DC condo market lately or something unique to this building? (I remember drug issues at the skate park years ago but not sure if that situation improved or not) |
Anonymous
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I would think it is Shaw. The area is losing popularity with the rise in crime. But they also overpaid in 2019.
The biggest insult is the 1.3mil tax assessment. |
Anonymous
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I don’t see values in any of those neighborhoods going up for five or ten years. I just think that’s the minimum lag for Covid, commercial real estate, etc. The neighborhoods closest to associated increases in crime will take the biggest hit, the fastest.
2020 was a special kind of disaster, it set a lot of shockwaves underground that were still only beginning to understand. |
Anonymous
| Shaw is dangerous. |
Anonymous
| Shaw was dangerous when I lived there in 1993. Now, it's fine. I think people really overpaid to be there. |
Anonymous
| This area has been stagnant or dropping for condos for quite a while. |
Anonymous
| It’s the crime. |
Anonymous
| Crime is up in Shaw, and condos generally don't hold value that well and are difficult to sell. That combo=price drop. |
Anonymous
Also don't forget about rates. A $1,050,000 condo in 2019 is cheaper than an $850,000 in 2024. |
Anonymous
| From pics 14 and 15, it looks like this condo is partially below ground. If you're going to buy a condo in DC, at least have it be on an upper level, not in something akin to a basement. |
Anonymous
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Wow, that is not a $1m condo. Even in 2019.
They waaaaaaay overpaid for new construction. |
Anonymous
| That location is as much logan circle as it is shaw. Crime there isn't like the area around the shaw metro. It was just overpriced. One room doesn't even have a window. |
Anonymous
It's this. Without the rate change, you might still have seen a small decline in value, or maybe the condo just holding steady with no appreciation. Paying 7% on a jumbo loan for a condo in a pricy neighborhood where everything else is also really pricy is just increasingly out of reach even for DINKs with good jobs and a big down payment. I think you'd see more sales like this right now if not for the fact that many sellers have such low rates from buying or refinancing in 2019-2021 that they simply choose not to sell below a certain floor and will rent it out or just suck it up and stay. Looks like this seller was highly motivated and willing to take a big loss. Or maybe financially insulated such that the loss doesn't hurt them as much as it would hurt someone else. I own a condo in the district and we could not sell for 15% below our purchase price -- we simply could not afford to do that, and would just stay in our condo rather than do it. |
Anonymous
| Wow, whoever paid a million bucks for that condo in 2019 was a moron. |
Anonymous
I agree with this. It's correctly priced now, it was way overpriced then. For comparison, here is a 3 bed, 3 bath condo (row house conversion) nearby that is now listed for 799k after a bunch of price drops. Also partially below grade, also updated (the updates to the 850k one are nicer). Almost same size: https://redf.in/jIPq13 The market in DC kind of lost its mind when rates were low. This is part of the correction. I think crime is pretty minimally at play here, especially because condo-dwellers are less likely to be bothered by it (also less likely to have kids, which impacts how bothered they are). |