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Real Estate Update: Sales Up and Prices Down

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Sales of detached homes in Bethesda increased by 8.5% in 2012 to 762 homes sold.  The average and median home prices however dipped lower, by 2.2% and 1.6% respectively.  The average price for a detached home in Bethesda in 2012 was $949,546, a decrease of $21,757 below the average price in 2011.

Normally when sales activity rises average and median prices follow along.  This year was different because the increase in sales volume was not distributed evenly across all price ranges.  Rather the range between $750,000 and $900,000 saw the lion’s share of the increase in activity and this lowered the overall average and median prices.  This is good news! Prices are not falling but rather more people are entering the market and buying homes.  Our market is actually poised to grow and it won’t be long before prices begin to reflect this increased demand.

Nearby this has already begun to happen.  The District of Columbia real estate market is on fire.  Demand for housing has reduced the supply of inventory of available homes by over 36%.  This past year the average price of all homes in DC is up nearly 11% and the median price has jumped nearly 18%!  In Montgomery County the supply of homes for sale has also contracted sharply by over 30% and the County’s median price has increased nearly 5%.

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