Need some ammunition to survive the banter at your next cocktail party?
Never fear, The Kilner Group’s Research Department has you covered. We’ve compiled a list of facts about the DC area real estate market to help you in your time of need. Go ahead, wow that person you just met (and whose name you’ve already forgotten) with your new-found market expertise:
1. The region’s severe winter weather slowed sales, but couldn’t stop prices from climbing for a 27th consecutive month.
Old Man Winter kept lots of buyers at home (roasting chestnuts, no doubt) from January through March, but he wasn’t able to keep prices from their upward march. For a 27th consecutive month, home prices in the region saw an increase. We’re no Greenspans, but we can recognize a housing recovery when we see one.
2. Must be all the politicin’… Washington, DC continues to command higher prices than Montgomery, Loudon and Fairfax Counties.
Shorter commutes, more food trucks, higher probability of a presidential motorcade passing by… there are many reasons why demand is higher for city housing than it is for the suburbs. In April, the median sold price in DC was $499,000. That beats the median sold price in Montgomery County in the same month by nearly $100,000. Fairfax was more competitive, with a median sale price at $465,000, but that’s still $34,000 less than DC.
3. Don’t move to Alaska just yet: PG and Howard Counties are bargains compared to their higher priced neighbors.
Did the previous paragraph suddenly make you feel priced out of the region’s housing market? Fortunately, you’ve got options. A 4 bedroom single-family home in Prince George’s County had a median sold price of $266,500, about half of what you would expect to pay for the same number of bedrooms in Montgomery County, which comes in with an April median sold price of $527,450. If you’re okay with being a little closer to Baltimore, Howard County is a great option, with a median sold price for four bedroom homes that’s a little less than $462,000.
4. Think traffic is bad? Now try adding 700,000 people to the region over the next 7 years.
A recent study from the George Mason Center for Regional Analysis says that by 2020, we can expect to be sharing the DC region with an estimated 700,000 more people. The paper also estimates that we’ll have upwards of 850,000 new jobs in the DC metro region by 2032. More jobs = more commuters. So how does the region handle the influx of jobs and people? By building more, a lot more. The paper projects that by 2032, the region will need an additional 344,634 single family housing units, and 203,674 multi-family housing units. These are just projections, but certainly food for thought for anyone thinking about the future of real estate development in this region.
5. Housing prices in the ‘burbs still haven’t reached their pre-Recession levels. Shucks.
While DC prices have recovered and surpassed their pre-recession levels, the Maryland and Virginia suburbs are still struggling to climb back to their 2007 peak. But don’t fret suburbanites, the market is still pulling itself out of a severe correction, and if it’s not already, your home will be worth what you paid for it in the not-so-distant future.