Discover Bethesda, Maryland...365 Days a Year!

Day 8: The Sunday Snapshot, Bethesda Real Estate

Each year we review statistics on Bethesda Real Estate to track trends and keep up with the appreciation, or rarely, depreciation of the home values in Bethesda.

I have good news to report.  For the second year in a row Bethesda real estate home values have increased. 

In 2011, seven hundred detached homes were sold at an average price of  $983,721 an increase in value of 3.5%, or increase of $33,057.

Since 2009 home values have increased over $60,000, or an increase of nearly 6.5%.  I’ve had prospective purchasers tell me at open houses that they “are waiting until the market reaches the bottom” before purchasing.  They often surprised when I tell them that the real estate “train has already left the station.”The chart at right depicts the 10-year price performance of the Bethesda real estate market for detached homes (zip codes 20814, 20816, 20817).  As you can see if we keep up the same pace we should eclipse Bethesda’s all-time high by the end of 2013!

It’s been widely reported that Bethesda is one of America’s most highly educated towns and that may explain why real estate is performing so well here.  Our residents understand that we are experiencing a period of abnormally low-interest rates and the cost of buying a home has never been more affordable.  The chart at right shows the average rate of interest charged on 30-year conforming loans (loans currently at or below $417,000) since 1980.

In 2011 the average interest rate for a 30-year conforming loan for the year was 4.45% (as of December the rate had dipped to the lowest point EVER! at 3.96%).  The 15-year rates fell to 3.25% in December!  Rates are now less than half the average rate over the last 20 years!  The smart money here in town knows this won’t last forever so they are taking advantage of these historically low rates and locking in for the long-haul.  There are many economists that believe that 30 year fixed-rate loans may become a thing of the past (due to the risks involved to investors) and these loans will no longer be made available.  The point I’m making here is that now is the time to borrow money (if you can afford it of course) and leverage your housing investment.

Amy and I are looking forward to another exciting and challenging year helping Bethesda residents buy and sell their homes! Today is Sunday January 8, “Playoff Weekend”, and Amy’s beloved Pittsburgh Steelers take on the Denver Broncos -the AFC’s most unusual wildcard team.  Go Steelers! (hey I gotta root for my gal’s team if the ‘skins are out!) ~Brian

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