What would you do with budget of 600-700K?
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Anonymous
You're kidding, right? Those two houses you linked to are expensive and tiny. |
Anonymous
I agree prices are going to drop. But it'll take a bit longer, and the drop will be bigger than you're suggesting. More like a 30% drop over the next five years. |
Anonymous
Why do you think prices will drop 30%? |
Anonymous
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"Why do you think prices will drop 30%?"
I'd like to hear the answer to this. I live in a "good neighborhood in DC," and just don't see many people who will take a hit. The World Bank/IMF/UN/EU folks won't - they may have pay freezes, but there won't be layoffs. Same with the government employees. The doctors, most of whom work for hospitals, will be fine, as will the academics or IT folks. The private sector lawyers and journalists have already gone through a downsizing, so I think whoever still has a job will have steady employment. There's a chance some of the consultants may take a hit - at least those that have government agencies as clients - though I think most people will be senior enough not to lose their jobs. So I just don't see most of the people in my neighborhood losing their jobs or taking huge paycuts. And if there is little turnover in the housing stock, there will be a healthy demand for what does go on the market. And don't forget, DC has so many ex pats - there are always foreigners willing and able to buy to buy here. So I would like to know how the PP thinks the 30% drop will happen. |
Anonymous
1) Federal budget cuts. 12:25 already covered this, so I won't bother elaborating. 2) Interest rates are going to go up. Not in the next 2-3 years, but 4-5 years out. Everyone I know who is buying in DC or a close-in neighborhood is pushing to the limit of the loans they can qualify for, so if rates were higher, they wouldn't be able to pay today's prices. Not only that, but some of them are using ARMs, so if their salaries stay flat and rates rise, they'll be in trouble. 3) This is probably the biggest one. Everyone in DC and close-in suburbs seems to have learned the wrong lesson from the housing crisis. The rest of the country learned that real estate prices can go down. People here have concluded that real estate prices can go down everywhere else, but that in DC and close-in suburbs, it's impossible for prices ever to go down. So they're happy to pay a very high price for a house because they're confident it's risk-free, and that if they want to move, they'll be able to sell for an even higher price. That works as long as prices don't drop significantly, but if prices start dropping and that confidence goes away, that'll be one more reason for prices to fall. The job loss and interest rate changes might mean a 10-15% drop, but this feedback effect could easily turn that into a 30% drop. I'd feel differently on this if the DC homebuyers and homeowners I know were saying something like "I know it's risky to pay this much for a house, but I really want to live here, so it's a risk worth taking." But that's not what they're saying. They're saying that it's impossible for prices in desirable DC neighborhoods to go down. It sounds like what the rest of the country was saying back in 2006. And that makes me very nervous about the market here. Does that mean for sure that prices will drop? Of course not. Nothing's for sure. But there's a lot of risk there, and everyone buying in the expensive parts of DC and the close-in suburbs right now seems to be convinced that there's no risk at all. |
Anonymous
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Same situation as you OP. Similar budget and we have a 3 month DD. We just bought a place on the Fairfax side of Falls Church. Primarily for the schools. But also it was close to metro and to my DW work so a good commuting compromise for both of us.
For that money (~700k) we got a 4 bdr in a great school district. It's NOT too early to buy for the school. Make the sacrifice now and get used to it. You won't regret it later when school time starts. |
Anonymous
Agree- we've been living in our home 7 years and NEVER thought we'd be here this long. Things just worked out that way. |
Anonymous
I think no matter where you live in the country there is always this tradeoff between living in "the City" and having this walkable urban feel and that same location having the best schools up thru high school with SFH and tree lined streets. This is even before you start talking about a price range. The closest you will get in this area is the built up suburban downtown area like Arlington and I'm not sure about the SFH in the price range. The good news is you do have a budget with quite a few options. If you say you are looking for a great elementary and willing to send your kids to private school after and the most important is space and close-in urban walkability, you may get one set of answers. If you are willing to move out to burbs ( like Kensington or even Bethesda) you can find the cute tree lined street and great schools but you may not be a close walk to a metro. I like the pp that suggested looking at 2 houses in your price point in some of the areas people suggested and figure out the things you are willing to compromise on and your absolutes. |
Anonymous
| OP here- thank you.. Then to re-phrase my question, I am most interested in a great elementary and willing to send kids to private school after, and the most important is space and close-in urban walkability. And safety is very important too. Any ideas for neighborhoods within the district in that price range? |
Anonymous
There really aren't any neighborhoods in the District like that for $600-700k. I'm not trying to be discouraging, but they really don't exist. You get space + ok walkability, but not safety or great elementary schools (Crestwood or Brookland). Or you get safety + a pretty good elementary, but not space and only fair-to-poor walkability (NW, west of Rock Creek Park). You've got to choose which are your priorities. |
Anonymous
The one for 775 is under contract. Really nice house. The other house is listed at 620 with: lower level-full size windows,walk out to fenced and reasonably level yard, family room, bedroom, full bath main- galley kitchen, LR,full bath 2 bedrooms. UL- open area [could make bedroom], full bath 1 bedroom It looks clean with useable baths and average kitchen. Low bid [even under 600]plus about $5000 for patio, new counters, french doors, paint etc would make it a lovely house for a small family. |
Anonymous
These are incompatible in NW DC JKLMMO neighborhoods for under $800K. You have to choose. Urban walkability means high-density (and therefore smaller). |
Anonymous
| OP, I think you might be able to find a 2 or 3br condo in a NW DC neighborhood with great elementaries at your price range. Condos are more likely to be on/near main streets so there would be your walkability. I'm in MoCo, and happy for it, but my husband occasionally pines for life without any commute at all, which is why I have some idea of the condo prices. I don't quite see the point, especially with kids and especially since even the more central NW locations like Cleveland Park, Woodley, AU Park etc are pretty suburban from my point of view. Why not look in one of the Bethesda neighborhoods like mine where you can walk to Starbucks and a grocery store and never have to fork over $30k for schools? |
Anonymous
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AU Park hands down. Admittedly the houses aren't as cute, but the schools are good and you will still feel like you are living in the city. There is a lot that is still walkable.
That said, I have friends that like Capital Hill. It checks all of the boxes (houses are way cuter than AU Park), but its never had the same city feel to me. If you like that area more than AU Park it may be a better bet for you. |
Anonymous
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If I had that budget, in your situation, I would move to close in silver spring and save the rest of the $ for child care (if your working) since it will cost in the thousands. If your not working I would save that $ for a vacation home or condo at the beach.
Or save the extra $ to send your child to a private high school That's what I would do, we are very happy in silver spring at forest knolls At first glance the neighborhoods don't look great but they are incredibly family friendly and we love our neighbors! |