Wednesday, February 04, 2015

Gentrification Reality Check: DC Homes you can BUY for under $50,000

Seems ironic considering the prior post but not really. Just a gentle reminder that while the Ward 8 single family home market is heating up (or become less lukewarm depending on the neighborhood) the east of the river condo market continues to free fall --- and no one is talking about it.

Case in point, behold what you can purchase east of the Anacostia river for $50,000 or less (which coincidently is less than I currently owe in student loans).

FYI -- Early last month during a Ward 8 community meeting Chairman Phil Mendelson (in the presence of two At-Large Councilmembers) promised to have At-Large Councilmember Anita Bonds hold an immediate hearing on the east of the river condo crisis.

I haven't heard a word about it since. 

20020 Zip Code

"EXCELLENT OPPORTUNITY- Two bedroom condo located in sought out Anacostia. This unit has loads of potential and soaks in a lot of natural sunlight. This is a rare opportunity to re-design a condo unit. The property is currently a shell. This is a Fannie Mae Home path property."

"HUD HOME SOLD AS-IS, HUD CASE # 081-069794 IE *EQUAL HOUSING OPPORTUNITY*. GROUND RENT/HOA/CONDO FEES/FRONT FOOT FEES IF ANY TO BE VERIFIED. OFFERS SUBMITTED TO HUDHOMESTORE- Additional information and addenda at HUDHomestore, managed by MMREM-do not send offers to listing Broker."

"Investor alert - this property has lots of potential and is ready for renovation! Spacious 1 bedroom 1 bathroom condo with balcony off the living room that lets in lots of natural light. Conveniently located in Washington, DC close to Interstate 95 and 495."

"Spacious 2 bedroom 1 bath condo in a secured key entry building is ready for new owners. Close to Naylor Rd Metro & Good Hope Marketplace ( Safeway & Starbucks). Short sale is professionally negotiated. Will not qualify for any type of financing. Cash buyers only!!!!"
"Spacious 2 bedroom 1 bath condo in a secured key entry building is ready for new owners. Close to Naylor Rd Metro & Good Hope Marketplace ( Safeway & Starbucks). Short sale is professionally negotiated. Will not qualify for any type of financing. Cash buyers only!!!! "

20032 Zip Code

"*** Price Reduction***Great location to shopping and close access to 295 & 495. Coop pays all utilities and taxes. A great opportunity to live in D.C. at a affordable price. Owner financing with a 20% down payment. MUST BE OWNER OCCUPIED. NO EXCEPTIONS! PROPERTY IN GOOD CONDITION. You can buy this unit for less than rent... "

"Located bus line. Has 1 bedroom and 1 bath. Washer and dyer in the basement of building. Parking spaces not included. Investor delight. Call Css"


"Your BUYER will love this one... Spacious 2 BR 2nd floor condo with gourmet kitchen, stainless steel appliance, granite counter tops, hardwood floors, washer/dryer, and jacuzzi tub. 5 minutes to metro. Condo renovated in 2006."


D.V. said...

Some thoughts related to this posting I’m tossing out for feedback.

Affordable Housing (AH) has been a hot topic lately with strong opinions on both sides. The facts is that AH already exists EOTR ($26k/ condo..!?!) and it’s a lot.
Can the DC Gov/it’s respective agencies buy this units for use in its AH inventory instead of subsidizing building more? It’s cheaper, saves taxpayers money, stabilizes the market, good for comps if buying/selling a condo. Especially in cases of delinquent condo assoc. Also the AH is not going to be concentrated in one building/area. AH concentration does not work - there are a lot studies to back this up or just walk around some areas EOTR.
Instead DC Gov/DHCD pushes more new AH EOTR against community opposition, eg, Big K, Peebles Dev, 2620 Bowen Rd SE. On taxpayers and residents expense one way or another.
Am I missing something?

As of the gentrification fear: With all the DC gov program to help new homeowners (and some with 0% down) just buy one of these condos and stop worrying about it. Monthly mortgage payments $160-$300 even +HOA it cannot be more affordable than that. For the life of the mortgage. No pricing out/ gentrification once an owner. Do your part.

Hero to the Masses said...

So I don't think that buyers of these are going to spur gentrification. They might spur some speculation as people sit on them.

I think the gentrification comes from rentals and new construction near the Anacostia Metro and spreads out from there. You need some density for newcomers to feel safe and these don't have that.

Sarah said...

So glad you wrote about this! We've been talking about these condos at Manna. We know that there are issues with some of these condos currently being unfinanceable (sp?) due to excessive condo fee delinquencies in certain associations, investors sitting on properties and renting them out, etc. However, if research was done on the various issues, there may be a few banks that could offer financing and start to really get these units back on the market and thus help out the condo market. This is the perfect time to embark on this as the East of the River Homeownership Campaign kicks up this spring! Wish we had resources to do this kind of research, but it can be done! Would love to participate in a roundtable/hearing/work group on this!