June 2018 Housing Market Update: Prices at or near all-time highs in Washington D.C. and Baltimore Metro areas. Inventories continue their unrelenting decline, days on market at or near record.
Bethesda Newly Built Homes Price Appreciation
Same home sales for newly built Bethesda homes upon re-sale.
The average home price for detached homes in Bethesda (excluding brand new homes) over the last six months was $1,091,427 which is a $27,743 (2.6%) increase over last year and a $184,373 (20.3%) gain over 2010.
Comparing average prices from one year to another is the simplest way to track price changes, but there is another way and that is to take same home sales and compare the prices from one year to another. Doing this involves much smaller sets of data, but has the advantage of comparing apples to apples.
I recently went through sales of re-sales of recently built homes and compared the sales prices from 2016 to the original sale price of the homes.
For instance homes that were sold newly built in 2010 sold for an average of 10.4% more in 2016. Below is a chart with the original year sold and the average percent increase in price of the same house when re-sold in 2016.
Not surprisingly there were no homes bought brand new in 2015 and then re-sold (so far) in 2016.
Same home sales are a very useful tool for tracking appreciation especially in the new home market. While these averages shed some light on what a new home buyer can expect from the market, the underlying figures often cover a wide range. For instance the home with the greatest appreciation from 2011 home re-sold in 2016 sold for 23% over the original sale price while the home with the least appreciation gained only 5%.
Evaluating prices for newly built homes can be challenging. Having the right price guidance during your initial purchase is the key to a favorable re-sale outcome.
Charles Chapman has more than 20 years' experience in the Montgomery County real estate market. He has been a full-time agent through rising markets and good times, and also through falling markets an....
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