DC has continued to be a Great Market for First-Time Real Estate Investors
“…as of last year, the real estate market has seen significant stability and an increase in overall appreciation.”
For the better part of the past decade, Washington, D.C. has been a microcosm of change. From the lack of affordable income properties to the high cost of living potential tenants may endure, it’s not hard to understand why D.C. real estate has been an intimidating venture for first-time investors. However, as of last year, the real estate market has seen significant stability and an increase in overall appreciation. This isn’t to say this will continue, but through careful analysis and a bit of leg work opportunities can still be found.
Areas that are seeing the most significant rate of appreciation in still-affordable neighborhoods of the District include:
- Congress Heights
Located near St. Elizabeth’s campus, the area has become a recent hub for various revitalization projects. In 2014, the median real estate sales price was a modest $150,000. However, as of today, sale prices shot up to a median sales price of $221,250, thus creating a 47.5% appreciation increase. This increase marks the largest percentage real estate growth throughout the entire district, making this neighborhood an up-and-coming venture for recent first-time buyers looking to see their investment pay dividends in the near future.
Similar to Congress Heights, Anacostia has seen a history of economic woes and lack of real estate development in its time. However, this area is also seeing a recent boom.
In 2014, median sales prices hovered around $190,000, but home buyers saw a 35.5% appreciation increase in 2015 as experts watched property in this area being sold at a median sales price of $257,000.
A traditionally residential portion of D.C. situated along the district’s Northeast border, this quiet neighborhood is positioned next to the already burgeoning Brookland area, allowing residents both the comfort of their suburban settings and easy access to Brookland’s growing retail and restaurant amenities. In 2014, a single family home that sits on its own individual lot was selling at a median sales price of $399,900. Compare that to the median sales price of $482,000 for 2015, and you would notice the 20.5% increase in the average value of a Woodridge home.
- Foggy Bottom
Nestled on the edge of the Potomac River, this neighborhood is defined by the institutions that call this great area home: George Washington University, the World Bank, The State Department, (just to name a few) dominate the landscape, but there are still gorgeous relatively unknown homes like Snow’s Court. Development in the Foggy Bottom area has been steadily increasing, and in 2014 the median sales price for homes was $270,000. A year later and the median listing price has increased to $310,000, which accounts for a 14.8% increase of average property value.
The real estate market is stabilizing, and property appreciation has show incredible returns in many exciting and upcoming areas. However, even as the statistics show the potential for success always be aware that past performance is not indicative of future success in the real estate market —but if you do decide to invest, just make sure you employ a holistic, innovative approach to property management to ensure you see the best possible return on your investment.