Spring is in the air and I LOVE IT! I find that spring brings inspiration; it also brings out the best in people… and, oh yes, sellers and buyers of real estate come out in droves! The frenzy is in full swing and I can’t find a better example than a recent transaction I was semi involved in, where 85 competing offers were presented for one house! Clearly, significantly underpriced, but still…
So what have we had in the first three months of the year? Surprisingly, activity increased across the board. In Bethesda (all zips, all types), 522 properties came on the market, a 19.2% increase in number of new listings published compared with Q1 2016. Of the 522, 359 were Single Family Homes (SFH), representing a 14% increase. In Chevy Chase, MD, there were 178 new listings in this period - a 15.6% increase - of which 91 were SFHs, a modest 1.1% increase over same period in 2016.
This increased inventory was good for the market. My colleagues and I had been complaining for years that inventory levels were very low, so it’s encouraging to see more homes come on the market. Here’s what it means for sellers:
In zip code 20817, 157 properties went under contract during Q1 2017, a whopping 29.8% increase over the same period in 2016. Of these contracts, 130 were for SFHs, a 32.6% increase. Days on Market (DOM) average for all types was 30, 55% lower than Q1 2016. SFH average DOM was 46, still a 36% decrease. Lastly, the median home sold price in 20817 was $931,000 (SFH only).
Zip 20814 was active as well, with additional good news for homeowners. 114 properties went under contract, a 39% increase over Q1 2016. 54 were SFHs, a modest increase of nearly 4%. Average DOM for the zip (all property types) was 68, and 58 days for SFH only that represents an increase of 132%, which sounds terrible, but consider this: the median home sold price in the zip was $1,236,000, which represents a 25% increase over Q1 2016. I wouldn’t put too much emphasis on the increase of DOM or the Median Sold Price, as these can fluctuate wildly depending on the type of homes offered for sale. As we know, the range of prices in 20814 stretch from $500K to close to $10MM.
Moving on to zip 2015. Chevy Chase had a 10.9% increase in contracts written during the first quarter of 2017. Of the 112 contracts, 56 were for SFH which actually was a decrease of 3.5% compared with Q1 2016. DOM average for homes was up at 70, a 52% increase, while the median SFH sold price was virtually unchanged at $1,162,500.
The condo market in downtown Bethesda has expanded quite dramatically over the last 24 months. Toll Brother’s Hampden Row (55 units) is now finished, and sales are underway at the newer projects, Cheval and Stonehall. Please feel free to reach out to me if you have any questions about the condo market in Bethesda, Friendship Heights, or NW DC. With dozens of condo sales under our belts, we have an unparalleled insight into every condo building in Bethesda.
I am truly excited about the spring market and beyond. Barring any unforeseen surprises, 2017 has every potential to be strong and positive for sellers and buyers. If you are thinking about selling, buying, or have real estate related questions in general, please get in touch. I will be delighted to be of help.
Best wishes for a happy and peaceful spring!
Source: Statistical data was gathered and analyzed using the MRIS and includes sales information collected up to March 31, 2017.