Friday, August 31, 2007

One million dollar price reduction

Here in Washington DC, greed is quickly being replaced by fear. According to the MLS database, this 7 bedroom 3 bathroom North West DC house was originally listed at $1,950,000. Since then, the price has been reduced twice; first to $1,095,000, and more recently to $995,000. Taking the two reductions together, the price has been reduced by 49 percent.

My first reaction was to think that the original price was incorrectly listed. However, I checked out the price range for similar 7 bedroom houses in the same area. I found at least one other nearby house, also with 7 bedrooms, that was listed for $1,475,000. Within a 1/10 of a mile, a two bedroom apartment just sold for $705,000. The original valuation was high, but certainly not outlandish.

The DC housing market is cooling very rapidly. Around a quarter of listings are now offering price reductions. The market is saturated with rental listings from condo-flippers. Moreover, the market is about to be flooded by new condos currently under construction. For the whole story, click here for details.

Further details about the property can be found on The MLS listing is DC5483629.

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