Lack of affordable housing in the area. Are we heading into another bubble? (Baltimore: for sale, real estate)

[scorch666]

Anyone see a trend of house prices climbing so high that there are not any affordable starter homes around D.C. for less than 250k. Just last year you could find houses for less than 200k in the area in some rougher parts with some work to do. Now the only places i've seen with sub 200k houses are capitol heights with houses that require so much work that it's not worth it. Apparently it's worth it because even those houses are being bought.

Are we heading into another real estate bubble?

[seanlax]

Originally Posted by scorch666

Anyone see a trend of house prices climbing so high that there are not any affordable starter homes around D.C. for less than 250k. Just last year you could find houses for less than 200k in the area in some rougher parts with some work to do. Now the only places i've seen with sub 200k houses are capitol heights with houses that require so much work that it's not worth it. Apparently it's worth it because even those houses are being bought.

Are we heading into another real estate bubble?

What are you talking about? You can get a SFH that needs some work for 150k in Seabrook, which is a pretty solid neighborhood and not 45 miles away.

[North Beach Person]

Originally Posted by scorch666

Anyone see a trend of house prices climbing so high that there are not any affordable starter homes around D.C. for less than 250k. Just last year you could find houses for less than 200k in the area in some rougher parts with some work to do. Now the only places i've seen with sub 200k houses are capitol heights with houses that require so much work that it's not worth it. Apparently it's worth it because even those houses are being bought.

Are we heading into another real estate bubble?

Is that listing price or actual closing price?

I ask because we have several houses for sale here that are way overpriced. Some have been sitting for a couple years. The owners (with, quite honestly the listing agents' connivance) know what they'll take and not a penny less.

It doesn't help that many of the sellers bought at the top of the market several years ago and the property hasn't increased in value to that original inflated price (as in: paid $550K, current value $325K. The best one, or rather two are the one, a condo, which went for $950K and is valued today at $485K and the one where the people paid $1.2M for the lot and built a $700K house. Current value is $600K).

[MrRational]

Originally Posted by scorch666

...so high that there are not any affordable starter homes...

First... define what affordable is supposed to mean.
You know, like how much of anyone's net earnings should be allocated for housing costs. Max.
Oh, and don't assume anyone can really afford what they've signed up to pay.

Are we heading into another real estate bubble?

We've been in one for some time.

Apparently it's worth it because even those houses are being bought.

How far are they from a Metro stop?

[seanlax]

Originally Posted by North Beach Person

Is that listing price or actual closing price?

I ask because we have several houses for sale here that are way overpriced. Some have been sitting for a couple years. The owners (with, quite honestly the listing agents' connivance) know what they'll take and not a penny less.

It doesn't help that many of the sellers bought at the top of the market several years ago and the property hasn't increased in value to that original inflated price (as in: paid $550K, current value $325K. The best one, or rather two are the one, a condo, which went for $950K and is valued today at $485K and the one where the people paid $1.2M for the lot and built a $700K house. Current value is $600K).

Fantastic question. I was looking at foreclosures during my current home search and was seeing if foreclosures and short sells are priced differently here (Worcester) versus Baltimore and Washington, since several people from the area mentioned it. I was comparing the actual cost savings short and long term vs. addition time it will take to go through the process. So yes, that would be closing prices I was specifically looking for. And I was looking for habitable homes, no crack houses or anything.

But man what you mentioned is exactly what I've observed looking through price histories, especially on condos and townhomes in West Ocean City.

I didn't mean to deny a housing bubble, but there are still opportunities if you look and are flexible.

[scorch666]

Originally Posted by North Beach Person

Is that listing price or actual closing price?

I ask because we have several houses for sale here that are way overpriced. Some have been sitting for a couple years. The owners (with, quite honestly the listing agents' connivance) know what they'll take and not a penny less.

It doesn't help that many of the sellers bought at the top of the market several years ago and the property hasn't increased in value to that original inflated price (as in: paid $550K, current value $325K. The best one, or rather two are the one, a condo, which went for $950K and is valued today at $485K and the one where the people paid $1.2M for the lot and built a $700K house. Current value is $600K).

The prices around here are listing prices. If a house has a listing price of 200k then you can assume it will sell higher. I made an offer on a house and the agent told me that there were 29 offers for the house, all over the asking price.

[scorch666]

Originally Posted by MrRational

First... define what affordable is supposed to mean.
You know, like how much of anyone's net earnings should be allocated for housing costs. Max.
Oh, and don't assume anyone can really afford what they've signed up to pay.

We've been in one for some time.

How far are they from a Metro stop?

When I talk about affordable I meant houses under 250k like I mentioned in the original post. I know it's relative to what people make. The houses in Capitol heights are very close to capitol heights metro. Walkable, i've heard this will be another area of interest for investors in the future.

[scorch666]

Originally Posted by seanlax

What are you talking about? You can get a SFH that needs some work for 150k in Seabrook, which is a pretty solid neighborhood and not 45 miles away.

I just did a search and couldn't find any SFH for less than 150k. Can you post them up?

Thanks

[gjosephunf]

Originally Posted by scorch666

When I talk about affordable I meant houses under 250k like I mentioned in the original post. I know it's relative to what people make. The houses in Capitol heights are very close to capitol heights metro. Walkable, i've heard this will be another area of interest for investors in the future.

This is already happening. Plenty of home renovations occurring around the Addison & Capitol Heights metro stations. However, due to supply I think the prices are accurate similar to the bubble in San Francisco. If the DMV area lands Amazon HQ2 expect housing prices to soar further.

[e2ksj3]

Originally Posted by scorch666

When I talk about affordable I meant houses under 250k like I mentioned in the original post. I know it's relative to what people make. The houses in Capitol heights are very close to capitol heights metro. Walkable, i've heard this will be another area of interest for investors in the future.

There are a few houses in my area of College Park for under $250k but they are fixer uppers.