Mike Beversluis

Monday, April 16, 2007

That's a good formula. Do you think I can use it to figure how much I should be asking for a sale price? I'd be interested to see a chart where the average housing price using this formula was superimposed on the market price for the last 15 years or so.

By Unknown, at 18 April, 2007 13:03
Hmm - maybe you could estimate the low end price. One thing, though, is that people tend to buy a larger, fancier house than they would rent. There are lots of 1&2 bedroom apartments, but most houses have more.

Have you seen this graph?

http://tinyurl.com/rgmd2

It's pretty representative for housing around DC. The median house price in Montgomery County (where I live) is $400k-500k, which really isn't affordable on a ZP-grade government job.

Jumping ahead, if the ARM's ever rise significantly, I'd expect the market to drop from the foreclosures, especially the condo market, which has really been built up in the last 10 years. Houses might keep their value, just because you can't squeeze any more into Georgetown, etc.

By Mike Beversluis, at 18 April, 2007 18:32