Tuesday, December 13, 2005

Sold: 1608 Noyes Drive

The small house over at 1608 Noyes Drive in Silver Spring, MD finally sold for 470K on 12/6/05. This was less than the 489K that was listed on 9/11/05 .

See Previous Post.

8 comments:

  1. There is a sucker born everyday- and at 470K that house IMO is a dump. The Washington DC area is in one massive bubble. In the charming towns of eastern Connecticut- that have quick access to Hartford, Providence and the coastline a new 2500 square foot colonial on 2 acres 2 car garge, hardwood floors 3 bedrooms 2 baths- $312K- Guess thats why I see so many Maryland and Virginia plates locally in central/eastern Connecticut.

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  2. Well, the original listing was 519 and it sells for 470... the seller won this one, IMO. That house is barely worth 170 if it's renovated.

    This bubble ain't over yet.

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  3. I just ran some numbers on an internet loan calculator.

    With an interest rate of 6.25% for 30 years, putting 20% down, and with taxes+insurance of $3200 a year, the payments are over $2500 a month.

    If you use the old rule of 33% of your income going to a home, that implies an income of $7500 a month, or $90,000 a year.

    The median income in Montgomery County is probably roughly 90K, which sort of implies that is a "median" home in the county.

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  4. Not quite.

    The median income for a household in the county is $71,551, and the median income for a family is $84,035.( US Census Bureau )

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  5. The fact that that house sold for a pretty high price in comparison to what you get (a not-so-great house) and from other sales I heard about through friends, I would say that the DC Metro area doesn't have a bubble yet. Lets face it- people are buying if the house is priced right. Of course, I'm not buying now, but feel good about my rental units for the long term.

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  6. "median income for a family is $84,035."

    Hey, I wasn't that far off. And is that a 2005 number? If it's a 2004 number, a 3-4% government raise would get you pretty close to 90K.

    Anyway, for the point I was making, it would be better to overestimate. The lower the median income, the more ridiculous the price of that house.

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  7. I'm following zip code 20851-- a nice, realtively undervalued area right around Twin Brooks metro. Prices were generally around the mid to high 300's until late spring. The ones that went on sale this summer began to be into the 400's. The only ones I've seen selling lately are the ones marked back down to around $350 thousand. I'll be curious to see just how long owners are willing to let their places sit on the market before they start getting real...

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  8. It's up for sale again, this time for $500,000. Some very sloppy cosmetic work was done, but it's still a pile of shit, and there's still a huge problem of water in the basement when it rains for more than an hour or two. Whoever buys this house is buying a load of trouble.

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