Anthony Trevisan emails:
Thought you might enjoy this. One of my friends is trying to buy a house in DC but is having zero luck with anything. Everyone pays in full in cash and he can't compete.
D.C. house inspires 168 bids in red-hot real estate market
By Annys Shin, Published: DECEMBER 20, 10:14 PM ET
It didn’t look like a house anyone would pay $400,000 extra for.
Several walls inside the gray townhouse with blue trim were streaked with water stains. The first floor was noticeably uneven. And termites had dined in front.
The big pluses: It was 2,850 square feet, had off-street parking, and was in walking distance of Union Station and the bars and restaurants along H Street NE. Then there was the list price: $337,000. Similar houses in the neighborhood were going for closer to $500,000.
Two weeks and 168 bids later, the house — in the 800 block of Fourth Street NE — was sold this month for $760,951 to an unidentified buyer.
The sale floored many real estate agents, including James Lisowski, whose clients put in a losing bid. “I don’t think it was worth that finished,” he said, alluding to the house’s distressed condition.
While much of the nation is still struggling to emerge from a historic housing-market meltdown, the District is reliving its boom days. High rents, low interest rates, low inventory, and a flood of new residents in their 20s and 30s are making parts of the city feel like it’s 2005 again.
The median home sale price in the District is up 14 percent from last year, according to RealEstate Business Intelligence (RBI). And the average number of days houses spend on the market has fallen by nearly 30 percent, to 53 days.
Bidding wars have become commonplace along H Street NE, in Trinidad and in Eckington, among other areas. So have multiple cash offers and sales that soar past the asking price. In certain neighborhoods, buyers once again are snapping up unbuilt units based on floor plans. And more are forgoing inspections or appraisals.
Read the rest here.