Friday, February 06, 2015

Gentrification Reality Check: DC condos (and townhomes!) for less than $100,000

By now The Advoc8te has shown you DC condos for sale for under $50,000 and DC condos for sale below $75,000. Today I decided to highlight the wealth of real estate opportunities available for under $100,000. Most are condos but there are some townhomes as well. Most (if not all) of these properties were for sale at some point in the last 8 years for $150,000 or more. 

The culprit? Several things but primarily the limitations of how sales comps are calculated are killing the condo markets in Ward 7 and Ward 8. Those same comp restrictions keep west of the river condo values rising while east of the river continues condo (and townhouse) values continue to free fall. It's like the real estate bubble of 2008/2009 is still happening for those living east of the river.

The Ward 7 and Ward 8 condo market is failing and no one in a position to do something about it is paying attention. Why I do not know. Lord knows I've been sounding the alarm since 2012.

ZIP CODE 20032

"3-level condo lives like a townhome. Enter to tile foyer and hardwood floors. Lots of natural light with bay window in living room. Upstairs offers 3 bedrooms and 1 bathroom. Property is an end-unit with walkout basement. Potential for 4th bedroom, bathroom, and rec room downstairs. Drywall in basement has been stripped due to previous water damage."

"Completely renovated in 2007, and updated in 2010. Within a gated community with great closet space, bathroom with jacuzzi tub. Addl. features include stainless steel appliances, new windows, hardwood floors, ceiling fans, recessed lighting, central air, washer/dryer, And parking space included in price. Back on the MKT, bank approved price of 79,785 previous buyer fell threw."

"Some water damage caused from the roof, this property needs a little TLC. Great Investment Property. AS-IS"

ZIP CODE 20020

"Property is SOLD Strictly AS-IS. Seller makes no repairs. Approved short sale by BOA, one lender. BOA Short Sale and AS=IS addendum is required. Disclosures under documents."

"Great price for this cozy Fannie Mae HomePath condo. Great courtyard views and layout with 2 bedrooms and 1 bathroom. Sun filled second floor unit with washer/dryer and an updated bathroom. Condo is sold as-is and is move in ready."

"south facing semi detached row home awaits your creativity. Has 2 nice size bedrooms and a screened in porch off the first level. Fenced in rear yard.Metro bus stop close by. Accessible to Congress Heights Metro and Anacostia Metro. Estate Sale. Please honor request and schedule appointment. Buyers must be willing to dispose of contents left in the property."

"Spacious, light filled and comfortable living awaits you in this renovated one-bedroom/one-bath with central heat/air, and washer/dryer in the unit, all for $90,000. Also featuring open living area, hardwood floors, stainless steel appliances and granite countertops. Located in Fairfax Village. PHOTOS TO COME!"

"property is in poor condition Cash only"

"Very quiet community. Very close to Metro buses and station. Financing is available through Waterstone Mortgage."


Anonymous said...

What exactly do you want city leaders to do about this? Not trying to be snarky, but you keep saying that nothing is being done, yet you haven't really explained what you want done.

Ed said...

There really isn't anything the city can do beyond maybe acting as an alternative source of finance. The main reason why these condos are low in value is because most are ineligible for mortgage financing from nanks or FHA.

The biggest sign of that are the listings saying all cash only or no FHA. That restricts the market to cash buyers who end up being investors. Once the building is majority renters it's just a condo in name only.

Condos only remain viable when the majority of its residents pay their HOA and are on solid financial footing. Unfortunately this doesn't often happen EOTR and PG.

Anonymous said...

I would think that as in most areas that have this problem, property taxes are increasing - property values decrease, owner frustrations - short sells, desertion of property or foreclosure. These properties will be eventually snatched up, fixed up and sold for a profit by flippers or real estate development companies, to more "deserving individuals" and eventually Anacostia will become the next "Capital Hill" with property values shooting off the roof, sans the "undesirables".

h st ll said...

It would be interesting to see an updated version of this post.