D.C. Price Updates: New Highs and Surprising Lows
We admit… we spend significant time discussing market prices on our blog. The reason is simple: prices reflect the overall health of our market. Sure, there are many factors at play within our market’s health. But there are two points that keep prices top-of-mind for players in our market.
First, as we have noted many times, our market’s prices are increasing due to strong fundamentals—high demand and tight supply—and not due to any artificial factors.
Second, home prices represent the “bottom line” of how well our market is performing. In addition, prices offer a could indication of how much opportunity the market offers, and where that opportunity may lie— and where opportunities might be cooling.
With that in mind, we have two interesting new price developments to share with you:
- Median sale prices continue to rise in the D.C. metro area. Year-to-date prices have increased by 4.0% year-over-year for the metro area, and by 3.5% year-over-year for D.C. itself. The median sales price for the D.C. metro area also hit the highest July level of the past decade, hitting $455,000 and increasing 3.4% year-over-year compared to last July. These prices are significantly higher than the metro’s 5-year and 10-year averages ($438,080 and $409,990 respectively), and 28.2% higher than the to-year low.
What’s more, these price increases are once again shown to reflect the continued strength of our market fundamentals. In July, closed sales increased by 1.3% year-over-year and new pending sales increased 3.2%, while inventory dropped 6.4% year-over-year.
- Prices are not increasing in every neighborhood. Recently, we noted the six neighborhoods with the greatest growth in median sales price— Trinidad, Forest Hills, Anacostia, Eckington, Michigan Park, and Kalorama. However, as Urban Turf recently reported, certain neighborhoods are experiencing significant drops in their median sales price. The five neighborhoods with the biggest drop in price from 2017-2018 are— Spring Valley (-20.9%), Crestwood (-13.6%), North Cleveland Park (-12.7%), Berkley (-10.4%), and Ledroit Park ( (-8.9%).
However, even though these neighborhoods have seen the biggest year-over-year drop in price in 2018, it’s important to note that these neighborhoods continue to outperform the city’s median. Spring Valley and Berkley still have a median sale price well north of $1 million; Crestwood and North Cleveland Park have retained prices hovering around $1 million, and Ledroit Park’s median sales price is $772,00— still significantly higher than D.C.’s July median sales price of $569,500.
As our market continues to develop, we will continue to keep you updated on key areas of high and low areas of opportunity. To discuss where the best opportunities might lie for your unique investment context, call us at (202) 713-9072, or email us at firstname.lastname@example.org.