The books are closed on June real estate stats, so it’s a good time to look back at some neighborhood statistics for the first half of 2016 compared to the same period in 2015.
First, let’s note that D.C. median sold prices rose 3.30 percent in the first half of 2016 vs. the same period last year. The median sold price for a home in D.C. is now $537,000. The ratio of average sold price to original list price did not increase in D.C.— homes are still selling for 98.93 percent of their original list price, which means there still aren’t many bargains out there for buyers.
Looking at median sold prices for particular zip codes and neighborhoods, there are more winners than losers: Southeast zip codes continue to lead the way for increased median sold prices, with 20020 (Anacostia/Hillcrest) and 20019 (Benning Heights/Deanwood) at 27.80 percent and 21.70 percent increases respectively. At the lower end of winners, zip codes 20002 (Capitol Hill North/H Street district), 20007 (Georgetown/Burleith), 2009 (Dupont/Adams Morgan) and 20018 (Brentwood/Lincoln) also increased in median sold prices, but less than the overall D.C. increase. On the losing side of median sold prices, one finds some of the usual suspects where median prices are historically higher than D.C. overall, for example zip code 20015 (Friendship Heights/Chevy Chase, D.C.) where the median sold price of $960,850 is still the highest in the District. One surprise might be zip code 20032 (Congress Heights, D.C.) where the median sold price did not gain as did other Southeast zip codes.
The ratio of average sold price to median original sold price is an important indicator of the health of the real estate market: the closer that ratio is to 100 percent, the more it means that homes are selling close to their asking prices (or sometimes above, in the case of 100 percent plus ratios). In the District market, this ratio has been at 95 percent or above for the last eight years, with the exception of two months around 93 percent in the winter of 2009 (shortly after the economic decline hit the housing market).
In terms of this ratio for specific zip codes, about half the residential zip codes experienced an increase in the ratio of median sold to average asking price. It is worth noting here that homes in zip codes 20005 (Logan Circle/Thomas Circle), 20010 (Columbia Heights/Mt.Pleasant), and 20017 (Brookland/Catholic U) are all selling for above 100 percent of their asking price—which indicates the competition for housing in those neighborhoods.
So what are the implications for sellers? Looking at zip codes for both median sold price and average sold/list price ratios, we see seven zip codes where there is an increase in each—clearly a seller’s advantage: 20003 (Capitol Hill South/Navy Yard), 20005 (Logan Circle/Thomas Circle), 20010 (Columbia Heights/Mt.Pleasant), 20016 (Cathedral Heights/AU Park), 20017 (Brookland/Catholic U), 20019 (Benning Heights/Deanwood), and 20020 (Anacostia/Hillcrest).
And for buyers? Look for just the opposite: zip codes where median sold prices and the ratio of average sold prices to original asking prices have fallen since this time last year: 20032 (Congress Heights, D.C.), 20036 (Downtown D.C.), and 20037 (West End/Foggy Bottom). Though the prices in some of these zip codes may be high, they are still relative bargains compared to what they were last year.
Happy sales to you.
Ted Smith is a licensed Realtor with Real Living | at Home specializing in mid-city D.C. Reach him at TedSmithSellsDC@rlathome.com and follow him on Facebook, YouTube or Twitter. You can also join him on monthly tours of mid-city neighborhood Open Houses, as well as monthly seminars geared toward first-time home buyers. Sign up at meetup.com.