For Washington DC $567,400 is the median home value. In the last year, 4.0 percent is the amount the home value has increased. Regarding the following year, 4.3 percent is the amount of increase of the worth of houses forecasted.
Per square foot, the list cost median is $538 in Washington DC. The Metro Area of Washington-Arlington-Alexandria has a much lower per square foot list cost median of $226.
In Washington DC, $575.500 is the cost median of homes now listed. For houses that have been sold, $539,100 is the cost median.
$2,670 in Washington DC is the rent cost median. The Washington-Arlington-Alexandria Metro Area has a lower rent cost median which is $2,200.
When it comes to the real estate economy, the foreclosure rate is an important factor. The higher the foreclosure rate, the lower the value of homes. A very high foreclosure rate can cause the price of houses to go way down.
Also, if the foreclosure rate is very high, the value of real estate could drop enough to the point that it’s a contributing factor for the formation of a recession.
For every 10,000 homes in Washington DC, 1.5 are foreclosed on. The Metro Area of Washington-Arlington-Alexandria has a higher foreclosure rate of 1.7. The United States has a foreclosure rate of 1.6.
When a homeowner starts moving in the direction of foreclosure, there is something that occurs first. This is called mortgage delinquency. How is mortgage delinquency defined? It is the condition of the homeowner not making a payment on their mortgage.
Mortgage delinquency is a very serious matter not only for homeowners, but also for banks. One mortgage delinquency can lead to two mortgage delinquencies and so on. And then at some point the bank could very well start the foreclosure process.
2.4 percent of mortgages in Washington DC are delinquent. The United States has a lower mortgage delinquency rate of 1.6 percent.
The recession of 2008 wreaked havoc on the real estate economy and also the economy of the United States. One of the effects of that recession was that the home value in the United States fell more than 20%.
And this drop in the home value as a result of the recession still lingers today. There are so many people currently underwater because of the 2008 recession.
What does being underwater on a mortgage mean? It means that the homeowner has a mortgage debt that is bigger than the value of their home.
9.6 percent of Washington owners of houses are now underwater regarding their mortgages. The Washington-Arlington-Alexandria Metro Area has higher underwater rate of 12.1%.
Let’s move on to commercial real estate in Washington DC. We will look at the office market.
There was a huge office building sold in Washington DC. It is the Chester A. Arthur Federal Building which has 372,500 square feet. It was sold for $141 million to a company based in Los Angeles named Saban Real Estate. The seller is the Paramount Group.
The building is in DC’s Mount Vernon neighborhood at 425 Eye St. NW. In 2005 Paramount bought the building for $136 million, and in the year 2009, it renovated it.
The Chester A. Arthur Federal Building has retail shopping on the ground floor. Some of the stores are Orangetheory Fitness, Chex Liz Coffee Shop, a liquor store named Eye Street Cellars, Tropical Smoothie Café, and Alba Osteria.
Built in the 1970’s, the Chester A. Arthur Federal Building is seven stories tall. The zoning in the area permits up to 130 feet in height.
Saban Real Estate (the buyer) has not stated anything about it’s plans regarding whether it wants to increase building size or if it plans to do any renovation. The building is around 3 blocks distance away from Capitol Crossing Development and is across the street from DC Bar headquarters.
In the city of Washington DC, $75,628 is the median annual household income.
A source to get some information on the Washington DC multifamily market is Apartment and Office Building Association of Metropolitan Washington – https://www.aoba-metro.org/
Also, for another source to find out more about apartment real-estate in Washington DC, go to https://www.biggerpockets.com/
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