What is truly going on with the DC area real estate market, please explain?

[Anonymous]

Every where I look: U Street, 16th Street heights, Columbia Heights, home prices are out of control. These Townhomes for example:

Columbia Heights 1.8m:

https://www.redfin.com/DC/Washington/3013-13th-St-NW-20009/home/10029308

Mount Pleasant 1.6m:

https://www.redfin.com/DC/Washington/1829-Monroe-St-NW-20010/home/10010074

Woolley Park 2.2m:

https://www.redfin.com/DC/Washington/2850-28th-St-NW-20008/home/9987691


I live in a TH now and was hoping that I could move up to my dream place with a 1.7 - 1.9m budget. A year ago this was a realistic goal. Today, I need a 2.2 - 2.5m budget to meet the same goal.

[Anonymous]

Agreed, these prices are crazy and we just bought a 4k square feet for $2M.

[Anonymous]

Anonymous wrote:Agreed, these prices are crazy and we just bought a 4k square feet for $2M.

I mean we bought this summer.

[Anonymous]

Prices inside the city have been increasing since 2012. It started skyrocketing thanks to Covid because everyone wants a SFH.

I mean...this doesn't surprise me. I was on these boards in 2016, 2017, 2018 telling people to buy now. They all said 'I'll wait - it'll come down'.

When in fact D.C. prices have just been mirroring the rise of prices in S.F. and N.Y.C. in a much shorter amount of time. Its going to keep going up because everything in the city keeps getting more desirable.

- One of the top 10 most walkable cities in the country
- Grocery stores in every corner and more coming
- Best healthcare and hospital care available per capita basis
- Schools improving in every quadrant but already excellent in UpperNW, SE near Hill, and NW
- Job market is excellent
- Tourism market and therefore rental market is excellent
- City plans which have increased public transportation and bike paths across the metro area
- More ultra-wealthy moving into the city (Bezos should have been clue)
- City amenities include free pre-school for residents and paid leave for parents
- Beautiful mix of architecture, urban density, and modern capabilities

[Anonymous]

Anonymous wrote:

Anonymous wrote:Agreed, these prices are crazy and we just bought a 4k square feet for $2M.

I mean we bought this summer.

You were lucky!

[Anonymous]

People don't talk about it but D.C. also handled Covid incredibly well. There are 10 testing centers within 5 miles of my home and at least 3 within walking distance. All free. All well done.

Vaccine distribution. Food distribution for the needy. Homeless put in hotels. Daily press briefings at the height. The city and the mayor cares about the residents and that's never been clearer (at least to me) than in this pandemic.

[Anonymous]

Anonymous wrote:Prices inside the city have been increasing since 2012. It started skyrocketing thanks to Covid because everyone wants a SFH.

I mean...this doesn't surprise me. I was on these boards in 2016, 2017, 2018 telling people to buy now. They all said 'I'll wait - it'll come down'.

When in fact D.C. prices have just been mirroring the rise of prices in S.F. and N.Y.C. in a much shorter amount of time. Its going to keep going up because everything in the city keeps getting more desirable.

- One of the top 10 most walkable cities in the country
- Grocery stores in every corner and more coming
- Best healthcare and hospital care available per capita basis
- Schools improving in every quadrant but already excellent in UpperNW, SE near Hill, and NW
- Job market is excellent
- Tourism market and therefore rental market is excellent
- City plans which have increased public transportation and bike paths across the metro area
- More ultra-wealthy moving into the city (Bezos should have been clue)
- City amenities include free pre-school for residents and paid leave for parents
- Beautiful mix of architecture, urban density, and modern capabilities

OP here, I can’t believe I’m priced out of Columbia Heights/Mount Pleasant. I’ve had my eyes on MP for a while and was waiting after my kid is out of high in a year to start looking

[Anonymous]

Anonymous wrote:

Anonymous wrote:Prices inside the city have been increasing since 2012. It started skyrocketing thanks to Covid because everyone wants a SFH.

I mean...this doesn't surprise me. I was on these boards in 2016, 2017, 2018 telling people to buy now. They all said 'I'll wait - it'll come down'.

When in fact D.C. prices have just been mirroring the rise of prices in S.F. and N.Y.C. in a much shorter amount of time. Its going to keep going up because everything in the city keeps getting more desirable.

- One of the top 10 most walkable cities in the country
- Grocery stores in every corner and more coming
- Best healthcare and hospital care available per capita basis
- Schools improving in every quadrant but already excellent in UpperNW, SE near Hill, and NW
- Job market is excellent
- Tourism market and therefore rental market is excellent
- City plans which have increased public transportation and bike paths across the metro area
- More ultra-wealthy moving into the city (Bezos should have been clue)
- City amenities include free pre-school for residents and paid leave for parents
- Beautiful mix of architecture, urban density, and modern capabilities

OP here, I can’t believe I’m priced out of Columbia Heights/Mount Pleasant. I’ve had my eyes on MP for a while and was waiting after my kid is out of high in a year to start looking

I mean...I have my own bone to pick about Columbia Heights. I moved out in 2014 because it was dangerous then - loiters, open-air drug market on certain corners, schools are terrible, and gun shots in playgrounds. Its gotten worse not better. I've always been confused about why people are buying up the SFH rowhomes there on a continuous basis - to the point that something which you would have paid $750,000 for in 2016 is now $1.3M in 2021 but its true.

Mount Pleasant however I have no beef with. I actually think it'll get even more expensive once that part of the city (Kalorama/Adams Morgan/Mt. Pleasant) gets its own Whole Foods or Trader Joes and stops sharing with the 14th/P Street location.

[Anonymous]

There's also a secret to Mt.Pleasant/Kalorama/Adams Morgan - a lot of huge, pre-war apartment buildings which have fallen into disrepair or completely abandoned (walk around - the boarded up ones which take up entire blocks are super creepy). But I think the original owners of those buildings are sitting on diamond mines.

They're just waiting on offers of $50 million or more to sell and bam - that area is going to be the next U street development.

[Anonymous]

I’m new to the DMV. We don’t plan to stay longer than 5 years so we watch the market very closely to ensure we don’t over renovate, etc. Not to hijack this post, but can someone explain to me why homes in CCDC seem to sell at a higher cost per square foot than CCMD. They seem very similar. Or does it come down to being “walkable” to metro and/or the 4 shops on CT? Generally curious.

[Anonymous]

Anonymous wrote:I’m new to the DMV. We don’t plan to stay longer than 5 years so we watch the market very closely to ensure we don’t over renovate, etc. Not to hijack this post, but can someone explain to me why homes in CCDC seem to sell at a higher cost per square foot than CCMD. They seem very similar. Or does it come down to being “walkable” to metro and/or the 4 shops on CT? Generally curious.

Having a D.C. address and zip code has better cachet. That's basically it. You see the same thing with Potomac DC versus Potomac MD and the only difference is a dividing invisible line.

Property taxes in D.C. are also substantially lower. We only pay a city tax. Maryland residents pay both county and state at higher rates.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m new to the DMV. We don’t plan to stay longer than 5 years so we watch the market very closely to ensure we don’t over renovate, etc. Not to hijack this post, but can someone explain to me why homes in CCDC seem to sell at a higher cost per square foot than CCMD. They seem very similar. Or does it come down to being “walkable” to metro and/or the 4 shops on CT? Generally curious.

Having a D.C. address and zip code has better cachet. That's basically it. You see the same thing with Potomac DC versus Potomac MD and the only difference is a dividing invisible line.

Property taxes in D.C. are also substantially lower. We only pay a city tax. Maryland residents pay both county and state at higher rates.

Where is Potomac, DC?

[Anonymous]

The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m new to the DMV. We don’t plan to stay longer than 5 years so we watch the market very closely to ensure we don’t over renovate, etc. Not to hijack this post, but can someone explain to me why homes in CCDC seem to sell at a higher cost per square foot than CCMD. They seem very similar. Or does it come down to being “walkable” to metro and/or the 4 shops on CT? Generally curious.

Having a D.C. address and zip code has better cachet. That's basically it. You see the same thing with Potomac DC versus Potomac MD and the only difference is a dividing invisible line.

Property taxes in D.C. are also substantially lower. We only pay a city tax. Maryland residents pay both county and state at higher rates.

Where is Potomac, DC?

Sorry I was talking about Potomac Heights - also known as the Palisades. Homes start at $2M and the equivalent just across the border in MD is $1.5M.

https://www.redfin.com/DC/Washington/5240-Macomb-St-NW-20016/home/9943300

https://www.redfin.com/MD/Bethesda/4101-Maryland-Ave-20816/home/10640029

[Anonymous]

Anonymous wrote:The real estate market is crazy because interest rates are extremely low! 4 years ago, the rates were more than double what they are now. Prices are a direct result of interest rates.

4 years ago interest rates were around 3.5 - 3.8%. Its now 2.9 - 3.1%. Don't kid yourself - the difference isn't that crazy.

Its not like its back to Carter days of 8 - 9%.