✉️ Want to forward this article? Click here.
A home resold in Washington, DC, last year.
A new report finds that the Washington, DC, area saw a significant drop in home resales last year, but certain parts of DC saw profits increase.
According to the latest report from ATTOM Data Solutions, home resales in the region were down 31% overall in 2021, with the 3,925 homes resold making up 3.4% of the total units sold that year. In Washington, D.C., 457 homes were resold, making up 4.6% of the units sold, marking a 36% decrease from the previous year.
While the total return on investment (ROI) on home flips in Washington, DC, plummeted from 62.5% to 43.8% last year, profits increased in seven of the 15 ZIP codes that saw at least 10 homes flipped.*
The 20019 zip code, which includes neighborhoods like Deanwood, Lincoln Heights and Fort Dupont, continues to be the hub of home resales in the area, with a total of 87 resales making up 14% of homes sold during the year. Still, with a 36% decrease from the previous year, the zip code is no longer one of the most lucrative for resale activity in the city.
That title belongs to zip code 20008 (Massachusetts Avenue Heights, Connecticut Avenue Corridor, Forest Hills), which saw 11 resales in 2021 with an average ROI of 97.4%. Homes resold in 20008 were purchased for an average of $836,000 and sold for an average of $1.65 million, topping the city for a gross profit of $814,000.
Only two ZIP codes in the city saw an increase in resale activity year-over-year: 20007 and 20016. The former ZIP code, which includes Georgetown, Berkeley and Foxhall Village, saw 24 resales increase 52% year-over-year, but gross profits and ROI both decreased within the same period. ZIP code 20016 (Cathedral Heights, Tenleytown and Spring Valley) also saw a total of 13 resales increase 11% in 2021, with a gross ROI of 80.3% and gross profit of $735,000, making it the second-most profitable ZIP code in the city.
Note: This report does not consider renovation costs when calculating ROI, but experienced Realtors estimate renovation costs to be between 20 and 33 percent of the original purchase price. There were not enough property resales in Arlington County to include data.
*In some zip codes where profits increased year-over-year, the 2020 data may represent fewer than 10 resales.
Loading…
This article originally appeared at https://dc.urbanturf.com/articles/blog/as-home-flipping-drops-in-the-dc-region-profits-remain-high-in-dc/19463