The outlook of many real estate professionals is that DC home prices will continue to rise in 2017, but not so much as to cut into sales volume appreciably. For flippers, the ideal neighborhoods will exhibit low unemployment rates, rapidly rising home values and robust income growth. Zillow used these characteristics to come up with the five hottest DC neighborhoods for 2017, areas that will be of great interest to rehabbers.
Here's a breakdown of the profitable real estate hotspots for fix and flips this year.
Five DC Real Estate Hotspots to Watch in 2017
Hillbrook (6.6 percent projected price growth): Located in the northeast quadrant of DC, the median home list price in Hillbrook is $267,000 and the median sale to list ratio is 97 percent. Prices rose 15.2 percent in 2016. The area has a high foreclosure rate of 10.5 homes per 10,000, making it a fertile source of fix-and-flip properties. There are five elementary schools, one middle school and no high schools in the neighborhood. The area is about a square mile with a population of almost 7,200 residents.
Fort Davis (6.5 percent projected price growth): This Southeast DC neighborhood saw prices jump 11.7 percent in 2016. The median home value is $305,300, and the foreclosure rate is 5.9 per 10,000 homes. Homeowners outnumber renters, 72 percent to 28 percent. The median household income in Fort Davis is almost $44,000, and 49 percent of residents have at least some college experience. There are 15 public schools in the neighborhood.
Greenway (6.3 percent projected price growth): Another southeast DC residential neighborhood, Greenway has a median home value of $274,400 and a 2016 price growth rate of 12.5 percent. There are 17 public schools in Greenway, and 29 percent of residents have some college experience. The median household income is almost $29,000. The neighborhood has a rich inventory of homes ripe for rehab.
Woodridge (6.2 percent projected price growth): This northeastern neighborhood has been hot for a few years. The median price of $484,100 represents a 9.4 percent price rise in 2016. The foreclosure rate is 5 per 10,000 homes. The neighborhood is marked by its highly-diversified population, it popular nightlife and more than 50 public schools. The median household income is above $69,000, and 62 percent of the population has had at least some college experience.
Trinidad (5.7 percent projected price growth): Yet another northeastern neighborhood, Trinidad features blocks of Victorian and craftsman-style rowhouses. The median home value of $546,800 grew 6.1 percent in 2016, and the median list price per square foot in $408, which is $88 less than the Washington DC average. The foreclosure rate is 5 per 10,000 homes.
If you are interested in developing or investing in DC property, contact Walnut Street Finance for a no-fee consultation.