Standing on two feet in today’s real estate market

As I write this, the national average 30-year fixed mortgage rate is 6.33%, with VA and FHA loans hovering around 5.7%. These rates can fluctuate depending on the amount of your down payment, your assets and liabilities, your credit score and the type of home you are buying.

A $400,000 mortgage that cost $1,686 per month in 2021 at 3% will now increase your monthly payment by an additional $798. Unfortunately, this can eliminate some of the buyer pool or require postponing a purchase, especially for the first-time buyer.

On the other hand, we’re starting to see increased inventory, longer time to market, periodic price reductions, and even offers to help close and repair items found during a home inspection. home. So where are these homes and what are you getting for your money?

First, let’s define the term “house”.

There are two types of fee simple structures: a detached house and a townhouse (aka suburban townhouse). With a fee simple purchase, you own the land and the building(s) on it.

Another type of home is a condominium, where you own the unit and a corresponding percentage of the land below the building and the common areas inside.

In a co-op apartment, instead of owning the unit and outlying areas, you own shares of the company that owns those things.

Believe it or not, you can still buy property in DC for less than $250,000. It will certainly be a condo or a cooperative. It will likely be a studio or one bedroom, although there are a few two-bedroom units and even four three-bedroom units currently available. If you’re looking for less than $100,000, however, you’ll be sleeping in your own parking space.

Where are these cheap houses hiding? You can find plenty of them in Adams Morgan, Cleveland Park, and Petworth and quite a few east of the river in Congress Heights, Deanwood, Hillcrest, and Randall Heights.

River Park, a popular co-op along the southwest waterfront, offers a 2-bedroom, 2-bathroom unit for just $189,000, if your budget can afford monthly fees of nearly $1,400, including property taxes and utilities.

If you raise your purchase price to $500,000, you can choose from 538 available homes, including dozens of townhouses in Anacostia, Congress Heights, Deanwood, and Lily Ponds, just west of the Freeway. ‘Anacostia.

One-bedroom condos and co-ops also abound in this price range, so check out those in Brightwood, Brookland, Capitol Hill, and even Friendship Heights and Georgetown. For the brand-conscious, there’s even a 1,000-square-foot one-bedroom coop available at Watergate for just $425,000, down from $570,000. Who says you can’t do great business in DC?

In the $500,000-$750,000 range, you can live pretty much anywhere you want choosing from a townhouse or detached home in the Brookland-Woodridge-Michigan Park-Riggs Park enclave or an assortment of condos two-bedroom units in Columbia Heights, Dupont Circle and Logan Circle, and even three-bedroom units in Shaw. Why not? There are 471 houses to choose from.

To hit $1 million, there are 330 homes on the market: beautifully renovated homes in Park View, Petworth, 16th Street Heights, Brookland, Brightwood and Capitol Hill, plus condos in Georgetown and co-ops in Foggy Bottom.

If you can afford the next $1-1.5 million price range, 197 homes are waiting for you. There are attractive three- and four-story townhouses available in Bloomingdale’s, Capitol Hill near the H Street Corridor, and Columbia Heights. You’ll also find condos in the West End, Central Business District, and along the U Street Corridor.

There are 83 homes available in the $1.5-2 million range. Choose from fee simple properties in Upper NW, Capitol Hill, Chevy Chase, and Georgetown, or splurge and choose one of two two-bedroom, 2.5-bathroom condos at the Ritz-Carlton. You will only pay a “small” monthly fee of around $3,100.

For the lucky ones for whom price isn’t an issue, there are 142 homes currently listed from $2-10 million. They are scattered throughout Georgetown, Forest Hills, Logan Circle, Dupont, Kalorama, Wesley Heights, and the Embassy Row neighborhood of Massachusetts Avenue.

Unlike New York or Los Angeles, you won’t find anything in the tens of millions, but there are four homes listed between $10-12 million in Wesley Heights and Massachusetts Avenue Heights, plus an 11-bedroom beauty in Forest. Hills. , with approximately 17,000 finished square feet over four levels – perfect for you and 10-20 of your closest friends.

Valerie M. Blake is a licensed associate broker in DC, Maryland and Virginia with RLAH Real Estate / @properties. Call or text her at 202-246-8602, email her through DCHomeQuest.com or follow her on Facebook at TheRealst8ofAffairs.

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