A Few New Developments in D.C. Home Prices
We talk a lot about real estate prices, and for good reason. Housing prices offer a concrete picture of opportunity within our real estate market—both how opportunity continues to grow within our market, and where that opportunity may best lie.
Housing prices also indicate how other key metrics—such as supply and demand—are operating within our market. While prices can rise for a number of reasons, we have continued to outline that our market’s prices are increasing primarily due to our market’s low supply and high demand, indicating the overall good health, sustainability, and continued growth within our market.
Recently, a few new interesting pricing developments have emerged within our market. They include:
- The median home price for the D.C. metro area hit a 10-year high in May. This represented the 20th consecutive year-over-year increase in regional median home prices.
- Median home prices in D.C. itself actually dropped a small amount— by half a percent—in May. Yet, this tiny dip occurred despite a sizable amount of new supply entering the market. In May, supply increased by 6.5% in D.C., including a big 7.2% increase in new listings. D.C.’s drop in prices in May was much, much smaller than you would expect given the much, much bigger jump in supply. This suggests that despite big jumps in supply coming online, we aren’t meeting our demand to a degree that would meaningfully slow increases in home prices.
- The six neighborhoods with the greatest growth in median sales price between 2017 – 2018 were Trinidad (+33%), Forest Hills (+23%), Anacostia (+19%), Eckington (+18%), Michigan Park (+17%), and Kalorama (+15%). Interestingly, none of these neighborhoods made the list between 2016 – 2017. (Though also of note, this year Anacostia is also one of the six neighborhoods with the fastest-selling homes, suggesting Anacostia, in particular, is one to continue to watch in 2018.)
- While home prices continue their upward trajectory in our region, D.C. is one of the few major U.S. cities where rents have failed to rise. Nationwide, rents rose 2% year-over-year, yet rents in D.C. only increased by four dollars since early 2017. During this time, the Washington area had its weakest rent growth since 2011.
At Evergreen Private Finance, we are devoted to uncovering—and capitalizing on—our city’s growing areas of opportunity. To join us on this journey, and to learn where the greatest opportunity may lie for you, contact us today. Call us at (202) 713-9072, or email us at email@example.com.