Complete Guide to Washington DC Housing Market [2021 Edition]
The Washington DC housing market has seen its fair share of ups and downs during these last few months. With the COVID 19 Pandemic forcing people to go indoors last year and the national interest rates being reduced, wholesalers and investors are left to squabble for pieces of real estate across the DMV area.
I get it; investing in a piece of Washington DC real estate to earn residual income can be complicated at times. And there are a lot of factors you should consider before jumping into any real estate investment, especially with all that's going on now in the market.
In this guide, I will explain what's currently going on in the DC housing market and also reveal some stats on median pricing for various locations in the Washington DC area.
Washington DC Area Housing Market
Despite the crippling effects of the global pandemic, the DC housing market still experienced a massive surge as prices peaked at an all-time high.
The market experienced a strong year due to the lockdown, which forced people to stay indoors. I also noticed that a lot of people moved last year into the district. It was a good thing at first, but as more people came in, the overall price of houses increased. I will discuss this in the next section.
House Price in Washington DC
In its wake, the first wave of COVID devastated the economy - with the global housing market affected as well. Demand for properties soared higher, and supply dwindled, causing an increase in house prices.
However, there are other factors indirectly affecting the housing market—the interest rates, for example. Interest rates were considerably low last year, and this made housing affordable for a lot of homeowners.
However, properties were scarce, and this put a lot of pressure on wholesalers, in turn causing prices to soar.
Median Home Prices
The median home prices in Washington DC vary by locale or zip code. And trust me, there are lots of zip codes to select from. For example, in the Virginia area, at McLean (Zipcode 22101) and North Arlington (Zipcode 22207), over 60% of houses here were sold for about $1 million each.
In areas like Lovettsville (Zipcode 20180), located in Loudoun County, sales increased to 214 from 149 with a $530,000 media price. The biggest home gainer in median prices was seen at Bladensburg (Zipcode 20710). The price was set at about $172,000 in 2019 but currently sells close to $300,000. For areas like Chevy Chase, MD (Zipcode 20815), Bethesda, MD (20816), and the Friendship Heights neighborhoods located in DC (20015), homes were worth more than $1 million.
While North Beach (Zipcode 20714) in Anne Arundel County saw its sales improve to 28, from a score of 18, its median price also rose to $413,000 from $335,000. The median price for properties sold in Alexandria, Va, rose to $600,000. Prices in DC also increased to $630,000.
Note: Median price does not mean average pricing. It represents the midpoint. That is half of the properties in the area sold for more than that price, and half sold for less.
Why the Rising Home Prices?
The pricing on properties within the DMV has surged these last few months. And the affordability struggles as median sale prices touch record prices.
All these can be traced down to the fact that homes and condos have become scarce commodities for buyers, causing the few properties available to be sold to the highest bidder.
Also, as the world is trying to adjust to the new normal (impromptu lockdowns and shutdowns), scouting for the best off-market deals has become increasingly difficult. I'm also facing this difficulty. And the worst part of it all is that when you find that good deal, competitors will be breathing down your neck.
But this current price surge shouldn't bother you too much as factors like the rising mortgage rates and the continuous vaccination against Covid-19 could help to clamp the surging prices.
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