What direction will home prices take in the DC Metro suburbs during 2013? To give you an idea which way the wind is blowing, let’s start with a look at how Chevy Chase home sales stood at the end of 2012! We will then look forward to projections for 2013!
Chevy Chase Real Estate Recap for 2012
It would be fair to say that home sale activity and price gains were better than expected during 2012. The recession officially ended in 2009, but the housing recovery will be a very gradual process. However, the shadow inventory of distressed homes did not amount to the stark number expected by economists. As the broader economy recovered and job growth took hold, home buyer demand improved, fueled in part by low interest rates and escalating rents.
Chevy Chase experienced the highest number of sold listings in the $600,000 to $900,00 price range. The average six-month sales price as of November 2012 was $1,293,730, with an average of 44 days on market. There is a large amount of variety in market activity depending on the price range and neighborhood. Move-up buyers appear to be finding good opportunity in the higher price ranges.
In Bethesda, the average home sales price in late 2012 was $941,160, with homes spending an average of 43 days on market.
Chevy Chase Real Estate Projections for 2013
There are a couple of blind spots in the crystal ball, and these are due to the unresolved Federal budget issues that will remain in discussion during early 2013. We already know that some moderate tax increases are in place. We have avoided the worst-case scenarios of the fiscal cliff but the other shoe has yet to drop. Any fiscal policy changes that affect the mortgage interest deduction, or other elements of the housing market, could impact home sales.
This aside, there are a number of positives for the Chevy Chase real estate market in 2013:
- Mortgage interest rates below 4%
- New development and expanding amenities
- Strength in regional employment
- Stability and growth in national housing market
- Improving home builder sentiment
Nationally, home prices are expected to improve by 2% to 3% during 2013. It is very likely that Chevy Chase and the DC Metro suburbs will see similar results. Please note, the amount of price improvement can vary by neighborhood, home type, and price range! It all depends on the strength of home demand and the availability of mortgages. With restrictive lending and conservative appraisals, neither buyers nor sellers will run away with the market.
Overall, the demand for homes in Chevy Chase, Bethesda, and the surrounding D.C. area is expected to grow moderately during 2013. The variety of expanding amenities will ensure the popularity of these DC Metro suburbs!
As your Chevy Chase real estate professional, I am always here to help you with your real estate questions! If you are thinking of buying or selling a home, turn to me for the professional guidance you can trust. My experience with the Chevy Chase real estate market, and my commitment to client service, will give you the advantage in today’s competitive market!
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