HOUSINGNEWS REPORT
WILL AMAZON SAVE THE SWAMP?
year, although down 11.4 percent from 2016. With a median purchase price of $70,218 in 2017 and a flipped price of $165,000, investors earned a 135 percent gross return on investment per flip. The average days to flip there were 218 days in 2017. “Baltimore was one of only a dozen counties in the country in which a buyer would need less than 15 percent of their income in order to purchase a home using conventional financing,” Phelps noted in a recent presentation. Two zip codes in the District also made the top 50 markets for home flipping rate in 2017. The 20032 zip was highest in the metro area with flips accounting for 26.5 percent of the homes sold during the year, while in the 20019 zip, flips were 25.7 percent of the homes sold. Investors in the 20032 zip realized a 112.4 percent ROI in 2017 while those in the 20019 zip realized a 108.7 percent ROI. Prince George’s County, Maryland had three zips in the top 50 for home flipping rate in 2017. Those were the 20710 zip where flips accounted for 21.0 percent of all home sales, the 20748 zip where flips accounted for 20.3 percent of all home sales , and the 20746 zip where flips accounted for 20.1 percent of all home sales . Construction’s Slow Comeback Cranes dot the skyline of the nation’s capital these days, but economist Fuller said construction is not back to where it once was. “Our building permits are not anywhere near where they were before the recession,” he noted. “It
may have even slowed down a bit in the past year. We’re a little overbuilt in rentals. Vacancy rates have gone to 5 percent from 3.5 percent. It’s different by submarket.” Still, area homebuilders remain confident in the market’s potential, according to Mann. “Builder confidence is strong in that we are still a very undersupplied market. The bigger challenge in D.C. is construction costs. And land costs have
gone up, making it more difficult to get projects off the ground,” he said.
Plus, although there is demand for new housing, it is for a smaller portion of the market. Due to lack of land, building in the District is constrained, affecting affordability. Uber-Fueled Construction There is development happening further out, and thanks to Uber, Lyft and other ride sharing platforms, Mann
“It’s a challenge and an opportunity for us if we’re willing to build in the fringe neighborhoods and offer everything buyers are looking for. Then we’re able to attract buyers from all across the city. Affordability is still driving many of these decisions.” CLINT MANN PRESIDENT, URBAN PACE, A REAL ESTATE SERVICES FIRM FOR BUILDERS AND DEVELOPERS
WHERE HOME PRICES ARE AFFORDABLE (OR NOT) FOR AVERAGE WAGE EARNERS MEDIAN HOME PRICE AFFORDABLE FOR AVERAGE WAGE EARNERS? NO YES
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MAY 2018 | ATTOM DATA SOLUTIONS
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