Welcome to the October 2018 real estate market report for Washington DC’s Brightwood neighborhood. I will present a few citywide news tidbits, and then dive into the analysis of the Brightwood area home sales.
Washington, DC Market Trends
The Washington, DC real estate market continued its gradual cooling trend in September. The combined effect of record-high home prices and increasing mortgage interest rates caused home shoppers to hit the pause button last month. D.C. home sales in September fell by 3.8 percent, year-over-year. The median sales price was $525,000, up 4.8% from 2017.
We’ve been on Inventory Watch for several months. The number of available homes for sale in the city has slowly increased, hitting 2.2 Months of Supply in September (Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply). There haven’t been that many homes for shoppers to choose from since October 2015.
Half the homes sold in September were on the market 15 days or less.
Brightwood Real Estate Market Stats
Number of Brightwood Homes Sold by Month
Median Price of Brightwood homes (single family & rowhouse) by Month
October 2018 Brightwood Market Data
So, what advice can we give based on the latest statistics?
Bottom Line Advice for Potential Brightwood Home Buyers
The last three years have been really tough on home buyers, with tight inventory driving prices to record levels. Buyers may now feel like they’re back in the game. This market report gives shoppers a little extra vigor.
The First American Real Estate Sentiment Index says:
The seller’s market may be coming to an end. A slight pause, a softening of buyer demand. As more inventory enters the market, buyers have more options. Bidding wars are less likely and sellers start reducing listing prices.
Home buyer foot traffic is still very strong throughout the country right now. If you’re tempted to take a seat on the sidelines right now, think again. The easing inventory shortage provides an opportunity. The other factor to consider is rising mortgage interest rates.
This chart was created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. Today’s rate for a 30-year fixed conforming mortgage is around 4.875%. Even a small increase in interest rate can impact your family’s wealth, so don’t wait until next year to buy if that option is in your family’s plans.
If you’re considering buying a home in the Brightwood area, please contact me at 202-717-2276. I will help you find the right home!
First-time home buyers may want to check out my story: Diary of a First-Time Homebuyer.
A great way to stay on top of the Uptown DC real estate market is to search on my RealScout portal. This tool gives you customized property alerts that cater to your wants and needs. It also gives you a powerful room-by-room comparison view so you can get to the details you need quickly. Check it out.
Bottom Line Advice for Potential Brightwood Home Sellers
It’s a been a non-stop party for home sellers, who have enjoyed double digit price appreciation year after year. Desperate buyers were willing to jettison contingencies and overlook home flaws big and small.
Those days are coming to an end.
A recent report from real estate brokerage Redfin showed that 26.6% of homes listed for sale in September had a price drop, the highest level on record. Sellers have grown accustomed to getting record-breaking prices. Even in strong neighborhood markets like Brightwood where the supply of homes for sale (1.5 months) is lower than the city average, owners have had to adjust their asking prices to maintain buyer interest.
To be clear, home values are not dropping and there is no reason to panic. It is simply the rate of appreciation is decelerating. It’s unlikely that we’ll go directly from a pure seller’s market, which we’ve had over the last six years, to a buyer’s market. There will be a normal market in between where neither buyers or sellers are in control.
If you have a show-ready home, there’s likely no reason to change your plans. Just adjust your expectations slightly. If your home has major curb-appeal issues or other flaws, that may require further evaluation.
For an evaluation of your specific home’s value in this changing market, please contact me at 202-717-2276.
See you next month!
Forged with a civil war battlefield at its heart, Brightwood is a historic neighborhood that stands at the dawn of a new era. With a diverse and sensible housing stock, it has always been known as a family-friendly, “move-up” destination for hardworking Washingtonians.
Now, with the redevelopment of the 110-acre Walter Reed campus just to the north, this neighborhood is poised to join the ranks of the hottest areas in the city. This project will bring 66 acres of mixed-use development: shops, restaurants, entertainment and new residents. Children’s Hospital is developing a new health research campus and the U.S. Department of State will welcome chancelleries from a dozen nations.
All data is derived from the Washington area Bright MLS system as of October 10, 2018.
This report is for single family homes and rowhomes, NOT condos. The report covers the advertised subdivision of Brightwood, which includes many blocks that are traditionally considered to be Manor Park and Takoma DC. This report is informational and for the best advice for you as an area home buyer or seller, please contact me for a specific review of your needs.