June 02, 2008
– Comments (5)
Got the idea for this plot at Calculated Risk. they did the Mpls. Area.
DC had free houses before they will be free ones again. There is so much building going on here.
Here is another chart:
Mid AtlanticOFHEO Home Price Appreciation Tracker
The wealthiest areas will emerge unscathed. The genuinely wealthy always sail through. But we will learn how many of the seemingly well-to-do neighborhoods, in fact, are not. In time. Just give it time.
Not saying there was not a bubble in DC....cleary there was and it is in the painful process of deflating.
However, I think you also have to factor in that in the past 8 years saw large swaths of the city that were considered crime ridden and dangerous like U st., Colombia Heights, Navy Yards, etc. turn into decent neighborhoods which drove up prices. This was taking place at a time when mortgage loans were being handed out to anyone with a pulse which further drove up prices and speculation. Not sure if your figures are DC only or the surrounding areas of NoVA and MD.
I would also venture to say that DC population has probably increased quite a bit in the past few years which has added to rocketing housing prices. It seems to be that gov't has swelled post-9/11 with creation of the Dept of Homeland Security, plus ups at all Agencies dealing with a hand in the National Security pie, and contractors who suckle at the hind teet of this gravy train (and are well paid to do so). OK so trains don't have teets. A mixed metaphor. Sue me.
The Case-Shiller DC numbers encompass a lot of far-flung suburbs, not just DC proper. I am looking for DC-area income numbers, but I haven't found them yet. Since the DC home price index covers a huge swath of areas, from ultra-rich to ultra-poor and everything in between, my guess is that the trend (if not the absolute dollar figure) in median income is probably analagous to that of the entire country, which is flat in real terms.