Wednesday, April 15, 2009

Meet the Gazillionaire

There've been a number of articles about the sale I mentioned in my last post. The property was sold to this fellow for $7.295MM. With a living area of 4415 sq ft [$1652/sq ft], the condo has 4 bedrooms, 5.5 bathrooms. The previous owner bought it for $4.5MM in December 2005. Whowuzat?

Car mogul Jamie Darvish bought a four-bedroom, six-bathroom penthouse apartment at the Ritz-Carlton in Georgetown for $4.5 million. The apartment listed for $6 million and has a master bedroom with a wall of windows overlooking the Potomac as well as a private terrace. Darvish, whose father, John Darvish, founded Darcars Automotive Group, is general manager of his family’s company.

It turns out a mere bazillionaire bought a unit in the same building for $4.6MM in March, too.

In terms of dollar volume, these two sales represent 13% of condo sales and 5.86% of all sales in March. Removing the gazillionaire and bazillionaire condos from the analysis, it turns out dollar volume for condos was up a slight 1.25% YoY and the average price for condos was up 14.2%.


Anonymous said...

Can someone explain the concept of why there is an extra bath? I understand a half bath that is more accessible for party guests and the like, but a full extra bathroom? Truly I have seen this happen several times and can't come up with a good reason (and the more baths the better is not a good reason).

Anonymous said...

I wonder if this effect does not so much "skew" the "real" numbers (purchase such as this one are made with real money, after all), as show up the artificiality of the idea of e.g. an increase in average sale price across the entire DC market, from Georgetown to Anacostia. These large purchases (albeit this one is exceptionally large) occur with some regularity -- but always in one or two areas. When you remove large numbers from the data set, do you necessarily get a "truer" average, or just a lower one? Do you also exclude short sales?

Keith said...

Anonymous 12:28

That's why I show distribution of sales in my District sales analyses.

Anonymous said...

4 bedrooms, 1 bathroom per bedroom
then a bathroom near the entrance and a
bathroom by the patio

Anonymous said...

most car dealers are going broke.

Anonymous said...

I don't see why he has 6 bathrooms either. Unless the condo originally had 6 bedrooms, and 2 of the bedrooms were converted into other rooms.

My family's house in Florida has extra bathrooms, but that's because we have a full bathroom by the pool and another full bathroom by the gym/sauna.

Brandon said...

The first anonymous raises a good question.

Anonymous said...

Medians are oftentimes better for understanding a
data set then an average. The other option is to
look at the scatter chart or hostogram and throw out a
few outliers.

If you do the second try and do it consistently.