Long-time readers of this blog know that I started a thread in July 2005 titled “Washington D.C. bubble?” that, amazingly, now has 1246 comments (thank you, readers). My premise was that the Washington, D.C. housing market was one big bubble just waiting to pop, and for roughly two years we all debated that thesis fairly vigorously.
The Exhibit A in my argument was the house I’d bought in 1991, lived in for seven years, and sold when me and my family transferred to Atlanta. It was a 2,700-square-foot, center-hall colonial near the Mount Vernon Estate in Alexandria, Va. We bought it for $216,000 in 1991, sold it for $228 seven years later – and then watched as the Washington bubble began to inflate, and saw it appraised on Zillow for north of $600,000 (Zillow shows it now at $588,000 but HomeGain.com apparently didn’t get the memo that the bubble had burst, and still values it at between $686,481 and $805,870). And I said, folks, this is an aluminum-sided house with no basement,with no real yard to speak of – but a yard that floods during heavy rains, given that we sat just about a mile and a half from the Potomac River.