Washington DC Luxury Property Sales Report

Bethesda, Chevy Chase, & Washington DC Luxury Home Report

It’s been quite a while since I’ve looked at specific data dealing with the Washington DC luxury home market.  Many thanks to those of you who e-mailed to ask me for an update. It’s always interesting to see the trends in a far less predictable price-range, especially against the background of recent economic woes (or perhaps “Whoa!”). For this DC Metro area luxury home market analysis, I define the luxury niche as a property with a sales price of over $2.5M. This market report centers on data from zip codes 20016, 20015, 20008, the upper Northwest corridor of of Northwest Washington DC --west of Rock Creek Park. A few of the notable areas in this region include Kalorama, Cleveland Park, and Chevy Chase, DC (for those of you following the Georgetown DC real estate market, that's coming in my next report). The Bethesda Maryland data includes all Bethesda area zip codes (20814, 20816, 20817, 20818, 20812). Chevy Chase Maryland (20815) was also added for a little extra close-in D.C. Metro real estate flavor.

As I’ve said before, trying to drill down exact conclusions about the state of DC Metro Area real estate market from any "micro-market" is an impossible task. That’s one of the defining characteristic of a micro-market – that one type of home in a specific zip code or subdivision, or other kind of niche (luxury homes, 3000 sq. ft., Downtown Bethesda Townhomes) may be selling well while another housing type in a specific area, with particular features may be stagnant.

However, looking at DC luxury homes sold over a 5 month period gives enough data to create some interesting conclusions reflective of 2nd and 3rd quarter 2008 trends.

Bethesda, Chevy Chase, & Washington, DC Homes Sales Report

* rounded to the nearest whole number   /   Per MRIS

Key Metrics & Current Market Trends

• Average price similarities: Probably not enough 2007 data to draw any fair conclusions
• Number of properties on market: For most, if they don’t have to sell, they’ll wait.
• Ave. Sales Price as a % of Ave List Price: Until this recent slow-down, this metric was sitting at the 95% mark. “Today’s” 90% simply means that people who need to put their homes on the market are willing to make larger price reductions to sell.

If this report comes across a little “gloomy” and “doomy”, it’s supposed to be...but just a little. We’re in an uncertain time. And uncertainty is inherently scary. I understand there are more variables to measure in order to view the largest picture of the state of the DC luxury market, but the 90% metric makes a strong statement.   The conclusion seems to point to the fact that even in "recession proof" Washington, D.C.,  we seem to be in a recession.  But, in my humble opinion, this is certainly no time to “run for the hills." 

Contributing Blogger - Kevin Koitz

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