THE DC PARADIGM SHIFT
Prices in DC are coming down for condos. Single family homes are up year over year, but that trend changes depending on which month you look at. So DC is a bubble housing market bursting, like Phoenix, Miami or your-fave California city.
Not exactly. As pointed out by Mose and Lance here, Washington is a different town that it was before the bubble started growing. Sure a percentage of the price growth derives from the foolishness that says prices don't not matter because they keeps going up and up. Well that trend too had to come to an end.
But is DC's fate the same as other cities? Dcbubble does not think so.
We point to the lower crime rate, the retail renaissance, the MCI/Verison center, the baseball stadium, the Metro, all of which have helped DC come out of that 1960's post-riot funk. Prices went up partially in DC because the fundamental of the market have changed. DC is far more attractive place to live than it was 20 years ago, ten years ago or even five years ago. So we believe prices will come down, but not a much as other markets.
Others disagree. Over at the Housing Bubble Blog people are doubtful. One typical comments notes:
"That greater interest in urban living by people likely to pay taxes will wane and then vanish as the crackdealers move back in and reclaim their territory, complete with new Viking ranges and granite countertops . . ."And another says:
D.C. is always listed in the top 10 most dangerous cities. I walked on K street today and saw a burglary taking place; cops had their guns drawn.
pix by guppieluv