Archive for July, 2011

Maggie and Joe just bought their first home and had a few things to share about their experience with us.

The Queen of Columbia Heights, 1300 Fairmont St NW, went to settlement on July 22nd for $1.4 million, about $400,000 more than any other residential sale in Columbia Heights – ever.  What does this mean for a neighborhood whose history is both controversial and exciting? 

$1 million has been a psychological barrier for Columbia Heights sales despite similar sales occurring with frequency in neighboring Logan, U Street, and Mt. Pleasant.  Though the market as a whole remains mostly a buyers market, clearly robust sales are occurring and there is some serious money flowing into Columbia Heights.  Who are the buyers looking to spend more than $1 million in today’s market?

A recent post in the Prince of Petworth Blog (http://www.princeofpetworth.com/2011/07/1434-s-st-nw-goes-for-130000-over-asking-price/) noted a price escalation of $130,000 at 1434 S St NW.  How could this be?  Are the buyers crazy?  Well, possibly, but probably not.  The listing price is but a starting point and sometimes the price moves up, and sometimes it moves down.  Frankly, the price might as well be $1 in some cases as it is the buyer who determines the ultimate price. 
$130,000 escalation is rare and sellers should absolutely not count on this, though sometimes there is validity to a strategy of pricing obviously low to take advantage of a bidding frenzy which sometimes moves the price up slightly above the market value you would have been able to get under “normal” circumstances.  Of course, then again, what’s normal in the real estate market anyway?

With Congress tied up at the moment, it doesn’t seem like anyone is paying attention to the fact the temporary high-cost loan limits are set to expire on September 30, 2011. When that happens, conventional and FHA loan limits will move to permanent loan limits established under the Housing and Economic Recovery Act of 2008 (HERA).  The maximum high-cost county loan limit of $729,750 for 1 unit properties will be reduced to the current max loan limit of $625,500.   Now is the time to begin the dialog around this issue.  We need permanent high-cost loan limits in place now or the delicate recovery will face another bump in the road.  I’m already carsick and would prefer a smoother ride this winter.