Vincent Arnold

Commentary: Late in 2006, I had several opportunities to work in Washington D.C. They weren’t the greatest paying positions considering the standard of living in D.C which is still “EXPENSIVE.” Homes were outrageous at that time and I remember getting very, very angry about the housing market there. I kept asking myself, “how could anyone making a average wage live here in a, for example, $500,000 home?” I asked around while looking at job opportunities and the consensus was that you were going to pay through the nose for a home. A $200,000 new home in Texas was going to run you $500 to 600k on the average. The housing market was superheated just like in California.

Well, something just didn’t feel right with all of this. Housing prices had been increasing steadily from around 2003. I couldn’t understand it at the time but I kept telling myself it couldn’t last. Instead of decreasing, prices continued to increase until the latter part of 2007. Then the housing bubble burst and I said to myself, FINALLY! I knew the market couldn’t sustain these types of increases forever while the cost of living in the D.C. and other superheated areas barely increased along with it.

I am writing this to express my regret that the economy has taken such a sharp downturn and so many people are being hurt in aftermath of the post housing bubble boom/burst. Considering that I decided to stay in Texas and by not taking a job in D.C. back in 2006, I would have to say I have learned to count my blessings AND my lucky stars.

As they say, timing is everything and things DO happen for a reason.

Maybe now is a good time to look into the D.C. market again…

Home Prices Drop Most in Areas with Long Commute

Morning Edition, April 21, 2008 · Economists say home prices are nowhere near hitting bottom. But even in regions that have taken a beating, some neighborhoods remain practically unscathed. And a pattern is emerging as to which neighborhoods those are.

The ones with short commutes are faring better than places with long drives into the city. Some analysts see a pause in what has long been inexorable — urban sprawl.

The Washington, D.C., metropolitan area has been hit hard. Prices tumbled an average of 11 percent in the past year. That’s the big picture. But a look at Ashburn, Va., about 40 miles from the center of town, finds a steeper fall.

Source: NPR

This entry was posted on Monday, April 21st, 2008 at 11:23 pm and is filed under News.