PGCo Real Estate Flipping (Demo)

Prince George’s County’s real estate is on the come up.  Median home prices have surged by $10k; 2012’s median price was $160k, today’s median price is $170k.  Real estate prospectors who purchase homes at bargain prices are fueling the increased price.  From the Washington Post, “The county has become the region’s leading magnet for investors, who last year accounted for a third of all home sales, more than in the District or any other Washington suburb, including once foreclosure-ridden Prince William County. The arrival of house flippers and aspiring landlords is an encouraging sign for Prince George’s, where more than half of homeowners still owe more than their houses are worth and where hundreds of foreclosed houses still sit vacant. They have helped fuel a badly needed rebound in Prince George’s home prices, which are up almost 9 percent compared with the same time a year ago, RealEstate Business Intelligence reports.”
Cash&UpArrow “The free-for-all in Prince George’s mirrors the experience in Prince William, the region’s other major epicenter for foreclosures. After home prices there bottomed out in early 2009, investors immediately poured in, snatching up single-family homes for as little as $80,000.  Home prices have since increased by more than 30 percent. ‘Investors helped Prince William turn around pretty quickly,’ said Lisa Sturtevant, deputy director of George Mason’s Center for Regional Analysis. ‘I would imagine they will have a similar effect in Prince George’s.’”
There are concerns that the investors are helping to create yet another real estate market that is unsustainable.  I believe the entire Washington, DC area is inflated on the money of the government and that is what is unsustainable.  The sweet spot for Prince George’s County is that our county is leveling out and has not received the favor of defense contractors who have taken up residence in Virginia and other surrounding counties.  We have to rely on other means for fiscal stability in our county because federal tenants and property taxes have failed us.  

Comments (2)

My concern is how that will effect the county long term. If you have tons of homes being purchased by investors and renters who do not care about the neighborhood they live in since they have no stake in the property how will the create the more “livable community” that PG strives for??

[…] Follow this link: PGCo Real Estate Flipping | PGC Blog […]

Leave a comment