There are a couple of ways to figure out how well the real estate market is doing. And one of them is to take a look at he absorption rate – or, the amount of time it will take to sell the current inventory. It is by no means a science. But it does help gauge the local action.
So, how did February fare? Only so-so.
I took a look at zip codes that included Bethesda, Chevy Chase, Cleveland Park, Friendship Heights and Woodley Park (more specifically, 20814, 20815, 20816, 20817, 20818, 20015, 20016, & 20008). Individually the zips range from a 2.6 months supply of housing to a 9.1 months supply. Combined, they average a 6.1 months supply, which means it’ll take roughly 6 months to sell off the 608 listings currently for sale. Anything under 5 months = a seller’s market. Anything over 7 months = a Buyer’s market. We’re right in the middle, which = a stable market.
Interestingly, the average price for properties within these zip codes that sold in February was $733,027. They started off at $786,336 and at the time of sale were priced at $760,001. They received 93.2% of their original asking price. The average days on market for these sold properties was 96 (30 of them were on the market for over 100 days).
The current crop of 608 active listings reveals some interesting facts. The average days on market for this bunch is 123.9 days (with 150 of them clocking over 100 days). The average original asking price was $1,106,585 and has since been reduced to $1,061,061.
What does this tell us?
- the cheaper houses/condos are moving, as evidenced by the sold stats for February.
- the bigger, more expensive stuff… not so much, as evidenced by the active inventory averages.
- It would appear that the newer listings are getting the most action, leaving us with a hefty amount of picked over properties.
If you find that you are in the market for a home priced under $1,200,000 you might have some competition. I feel like a broken record, because if you read my blog, you hear me say this again and again: the well priced, well appointed home will sell quickly… and sometimes with multiple offers. This still holds true.
Call me if I can help you find a property, or sell a property in the area. I’ve been helping buyers and sellers alike for over 11 years.