Saturday, January 28

Mclean Housing Bubble: Reduced

A $50,000 price reduction in a house originally listed for $1.6 million is not exactly indicative of a bubble, but then again, this house has yet to sell. I suspect that before this is over, this house will be reduced much further.

For starters, the house is situated on a postage-stamp sized piece of property. While the sign out front says "custom" it is not any buyers customs home. Did you get to tell the builders what type of kitchen you wanted? Me neither. Then there are other houses in the same zip code for comparable prices that are better. On bubblemeter, there is a famous picture of a corner in Mclean full of for sale signs (Speculators Looking to Get Out!). This corner is only three blocks from this house. Not good.

The MLS number of this property is: FX5464923. Click the picture above for the listing. I suspect that the current owner of this house is the house next to it, which appears to have been built at the same time.

UPDATE: 30 January 06

The house is no longer listed in MLS and this morning there was a "Sold" sign hanging in front of the house. Great for the seller. I have to wonder what the buyer was thinking. Then again I do not have that type of money. However, if I did, there are a couple of places in the same zip selling for $1.3 million that are much nicer. Lets see if anyone moves in or if this is an attempt at flipping.

UPDATE: 06 February 06

Surpise, the house is again listed for sale and on the way to the airport, I saw that the 'Sold' sign was replaced with the 'Sale' sign once again. The MLS listed is back up. Guess the sale fell through. When I drove by on Saturday, there were a number of cars parked in the driveway. Looked like to may to be attending an open house...

Here are some of my previous bubble posts:
DC Housing Bubble: Popped - 13 November 05
Long Island Housing Bubble Popping - 20 September 05
DC Housing Bubble Popping - 02 August 05

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