Home prices in the Bethesda area have surged forward this year eclipsing the annual record detached home price set in 2007.
On January 5th, Bethesda Magazine published an article reflecting this data, quoting Brian Maury of Maury Real Estate, on its local daily news website, Bethesda Beat. According to data from our local multiple listing service, the average price of a detached home in Bethesda (zip codes 20814, 20816, and 20817) increased by over $47,890 in 2014. The average price of a detached home jumped to $1,093,042 an increase of over 4.6% when compared to 2013. Less impressive was the jump in median price. The median price of a detached home in 2013 was $895,000. The median price of a detached home in 2014 increased just $26,000, or 2.9%, to $921,000 (the median is the price at which half the sales are below that point and half are above).
Bethesda Real Estate performance 2007-2014
Home prices this year have climbed to new heights in our area and while there is evidence of a sharp decline in the rate of appreciation in home values across the nation, there appears to be some momentum building up again at the end of 2014.
“After a long period when home prices rose, but at a slower pace with each passing month, we are seeing hints that prices could end 2014 on a strong note and accelerate into 2015,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
Blitzer added, “Two months ago, all 20 cities were experiencing weakening annual price increases. Last month, 18 experienced weakness. This time, 12 cities had weaker annual price growth, but eight saw the pace of price gains pick up. Seasonally adjusted, all 20 cities had higher prices than a month ago.”
Also good news is that U.S. consumer confidence (as measured by the Current Situation Index) is the highest it has been since 2008. This optimism is translating into real economic growth. The U.S. Department of Commerce reports that 3rd Quarter GDP (Gross Domestic Product) growth increased at an impressive annual pace of 5%.
Will 2015 shape up to be another solid year for real estate in our area? We believe so. While the inventory of available homes in Montgomery County, MD is up nearly 30% from a year ago (only up slightly in the hotter DC real estate market), prices should continue to rise.
Maury Real Estate