You may recall my analysis of the Dupont Renaissance, a 15 unit building located on 1704 T St NW, 20009. As I mentioned in the post, within the first month of its closing approximately 75% of its units were being flipped by its "investors." My records show that three have flipped, two with a nominal profit.
I'm now scrubbing the District's sales data for November 2007. As I meander through the data, I've noticed a few units that have recently sold for significantly less than their original sales prices. Random examples:
- 1125 12th St NW #34. Sold 11/23/2007 for $300,000. Original purchase price: $370,000 on 11/07/2006. Market reduction: 18.9%
- 3900 D St SE #302. Sold 11/19/2007 for $139,900. Original purchase price: $220,000 on 12/06/2006. Market reduction: 36.4%
- 1451 Belmont St NW #117. Sold 11/23/2007 for $387,000. Original purchase price: $600,185 on 10/13/2006. Market reduction: 35.5%
Anyway, as I was perusing the Internet to scrub the data, I saw that 1704 T St NW #202 will be auctioned at a foreclosure sale next week, January 31, at 11:04AM. It's a 2/2 of about 900 sq ft. Deposit of $22,000 required. However, I also found that it's listed for sale for $587,000 [MLS ID: DC6612671] or $652/sq ft. It was originally purchased in December 2005 for $529,900.
So a buyer's choices are:
- Go to the auction next week and get it for a good price if it's still available, or
- Buy it for a "boom time" price and hand the desperate seller a nominal profit of 10%.
And the seller's choices are:
- Sell the condo at a loss and minimize damage to his/her credit, or
- Lose the condo to foreclosure and kiss his/her credit good-bye.
BTW, a unit at Gallery Place Residences is being auctioned at foreclosure, too.
Update: You might want to stay away from #202. The seller hasn't paid his property taxes since 2006 and the condo association put a lien on the condo [since removed] last year. This wouldn't be a pretty one to deal with.