- Miller Samuel Real Estate Appraisers & Consultants - https://www.millersamuel.com -

Washington DC Real Estate Speculators: 26 Square Miles Surrounded By Reality

The title of this post was previously reserved for politicians but now it seems more appropriate to real estate investors. Apparently investor speculation in DC [WaPo] [1] was more rampant than we gave fair credit for. [This was a front page WaPo story on Saturday]

Not just condominiums, but also townhouses and single-family houses, were snapped up by investors using no-money-down financing and non-traditional loans. They helped send prices soaring at unprecedented rates.

The investor element of the housing boom [cnbc] [2] appears to be the segment that is suffering right now.

In Florida, the oversupply of rental to condo conversions are causing the landlords to have second thoughts [SoFl Bus] [2]. Known as the “condo conversion reversion,” many condos are reverting back to rentals.

Is this unexpected? Not really. You can’t pile on thousands and thousand of units in a market and expect prices to rise indefinitely.

Ever made Hollandaise sauce? You can keep adding butter but risk having the emulsion break and being forced to start over. [sorry, will try to keep the cooking analogies to a minimum -ed]