Monday, December 12, 2005
The condo development 2020 Lofts which is located in Washington, DC at 2020 12th Street NW is infested by flippers.
A special thanks to one of my readers, DC Condo Watcher, who sent in this amazing picture of the lockboxes. Who wrote: "Just came back from a newer condo building on 2020 12th Street NW in DC. There were 18 lockboxes on two bars outside the building where real estate agents hang the lockboxes for condos on sale. There was no room left on the two bars so this particular condo that I was seeing actually had its lockbox directly on its door (to the actual condo unit inside the building). When walking down the hallway I noticed one more lockbox hanging off the door know of another unit. And that was walking down just one wing of this 12-14 story building. Therefore just extrapolating: 18 lockboxes outside, 2 on each floor of the 14 (28) = 46 units on sale in one building alone! This is much worse that I thought." There are 146 units in this building. Please note that not all these units are for sale. Lockboxes are also used to allow agents to show prospective renters units. Some of these units may be for rent.
The poster also visited one condo unit "2020 12th Street NW, the particular unit I saw was unit #T-10, a terrace level unit (which means it lies about 50% below grade - i.e., no sunlight). Just as astonishing is the number of units on sale at this building, is the astounding greed prevalent in the DC market.
"1BR, 1BA, terrace level (which means it's half below grade and you feel like you live in a basement - the windows are shorter than normal, and are located towards the upper part of the walls). It was 724 sq. ft., s a pretty decent size 1 br for DC.
It was never lived in, brand new, so the owner had change of circumstances or was an investor. everything in the condo was builder stock, so i am quite certain that the seller/owner did not spend any money to upgrade anything.
Oh yes, parking was included, but it conveys with the condo (as opposed to a deeded spot) - so the original $269K price came with parking as well. The building is definitely in an already gentrified area - it's just north of U street, so not as nice as your Dupont circle or Logan circle location, but still pretty good"
This unit was purchased in 9/2005 for $269K, and now the seller wants $395K. That approximates to a $126K profit (minus selling fees of 6%). I am certain that the owner did not put any money in the unit because it's brand new and advertised as "never lived in". I can tell that everything there was "stock". To see the Listing
Speculators have infested the condos at 2020 Lofts. Now, realizing that the market is changing, many of the speculators are now trying to sell. The peak prices were in in July 2005. The glut of condo inventory is already bringing prices down in the Washington, DC area. As the bubble continues to pop, condos prices are more vulnerable to large percentage price decreases then single family houses.
Posted by David at 11:03 AM