McLean Housing Bubble - Still Unsold a Year Later

I initially covered this $1.6 million house in January, 2006 when the price was first reduced by $50,000. Here is the listing (note: no longer active) at Zip Realty from September 2006 noting that the price had since been reduced twice more:

Clearly, this house has not benefited from any price appreciation.

Here is a screenshot of the last MLS listing which has since expired. There is still a for Sale sign out front. It is a Net Realty Now (FSBO) sign.

The flyer I recently picked up states that the current price is $1,450,000.

Here is a screenshot of the mortgage calculator for this house using a very conservative 5% interest rate:

That is a lot of money to fork over month after month for 30 years. And that's after forking over 20% up-front. That's $300,000 for a 20% down payment. Then there are taxes, utilities and upkeep. You also need to spend a couple of $$s just to furnish the thing.

There has been one significant change since last year. This month another house only two doors away has been completed and is now for sale. the Price, around $1.45 million. These two houses are by far the most expensive on Great Falls, by over $400,000. Frankly the houses, there are three of them, do not fit into this neighborhood. Now go back and look at the picture above. Not for anything, but for that price I think I would like something other than a driveway in the front yard. from what I can tell, the goal was to fit the biggest monstronsity into the available lot. At least that they managed that.

Don't expect this one to sell anytime soon. There are plenty of nicer alternatives available in the area for that amount of money. Right around the corner is a new condo development. Prices there start in the low $800,000s. For that price, you don't get a balcony, but you do get a wonderful view of a huge blue water/fuel tank.

Mclean Housing Bubble: Reduced - 28 January 06

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