Is the DC housing market nearing the peak set back in 2005-2006?

[tysonsengineer]

Jobs -> home value

So long as the U.E. rate around these parts is lower than the national average the draw to this area will continue(its like osmosis), therefore the demand will continue to an extremely low inventory of supply, therefore home values will stay high compared to other equivalent regions.

PS 0.35% of interest rate difference equates to 11% increase in total cost over a 30yr mortgage, so its significant no matter the home price.

[snowdenscold]

Originally Posted by tysonsengineer

PS 0.35% of interest rate difference equates to 11% increase in total cost over a 30yr mortgage, so its significant no matter the home price.

Yes, but housing here represents a higher percentage of ones income than in many other areas, so that 11% increase is a lot more significant.

[tysonsengineer]

Originally Posted by snowdenscold

Yes, but housing here represents a higher percentage of ones income than in many other areas, so that 11% increase is a lot more significant.

Yea I agree its significant (not sure if you misread what I wrote). On a side note, I dont think housing is necessarily that much higher of ones income in this area. I think in this area the "norm" is simply a lot higher for what one expects to live in.

I'd say as an average household making (I forget the real number) but say 110k annually in FFX (assumes a younger family with maybe only 1 child since the higher incomes are likely older families and less would be out of college), looking for a townhouse or 3br house in the 400k-450k range is about on par as a ratio with other parts of the country with smaller average incomes.

2500 mortgage vs 9500 (pretax) 6500(post tax) is pretty close to the old saying of 30%. This all would depend on what your DownPayment is of course (that number assumes only the 3%)

[Montacute]

I have not been finding anything in Arlington or Alexandria that is promising. There just doesn't seem to be anything out there.