Happy New Year East Bethesda!
We’ve just transitioned from 2016 to 2017. So how has the market fared? If we were to sum up the 2016 market in one word, it would be FICKLE. Sales prices within our neighborhood are down for the first time in a long while- but only by about 2%. So far in 2016 we’ve had 44 sales in East Bethesda via the Multiple Listing Service. The average DOM (days on market) was 44, while the median was 9.5 days, once again suggesting that a well priced and well appointed home will sell in close to a week. The average original list price was $1,163,845 while the average sales price was $1,123,980. The median sales price was $980,500 which means that roughly half the homes sold this year above $1-million. The minimum sales price in 2016 was $590,000 for a somewhat decrepit and moldy tear-down. The highest price was $2,020,000 for a brand new construction home. Sellers received 96.8% of their asking price, up ever so slightly from 2015. Older, pre-war homes, however, received 100.1% of their asking price!
After a long, low run, interest rates jumped 1/2 a percent after the election and are expected to climb further in 2017. Experts predict rates will land somewhere between 4.5 – 5.0% (they are currently 4.25% for a 30-year fixed, up from a 3.5% low this summer). How might this play in the future? Some speculate that it will increase sales as (primarily first-time) buyers race to beat rate hikes. Others (us agents, mostly) fear that the rise in rates will reduce purchasing power and prevent trade-up buyers from buying a larger home. Without this natural turnover, an already under-supplied market will only tighten.
As always, we’re here for questions. And please let us know if you’re considering a move in the near future.
-Marcie & Cati