The Bethesda Market

Posted by Lisa Fairweather on Monday, January 5th, 2015 at 2:45pm.

2015 is already here and as we get ready for a what we hope will be a busy spring real estate market, I would like to take a moment to share with you our analysis of the Bethesda- Chevy Chase real estate market for 2014. The overall news for our local economy this past year can be summed with one word – stability. Home prices have gone up modestly as inventory continues to be limited, buyer activity remains proportionate enforcing balance in the market.

Starting in the second quarter of 2014, we recognized a real shift in the downtown Bethesda condo market. Fueled by the largest new construction start-ups in more than two decades, condo buyer attitudes have changed dramatically, bringing about a significant increase in price per SF for new luxury condos. Almost all of the new construction luxury condos in Bethesda, including The Darcy, The Lauren, & Hampden Row, have set a new high standard in terms of target pricing, ranging from $950 to $1,500 per SF.  

New construction pricing has helped pull up resale values for condos in luxury downtown condos that lost 20% or more of their value during the recession.

In all of 2014, 335 condos and TH’s were sold in all of Bethesda-Chevy Chase at an average price of $511,000. This is an 18.5% drop in units sold compared with the same period in 2013, and a slight increase in the average price. These figures do not represent the units that have sold (under contract) at any of the new construction buildings.

 The majority of all condo/TH sales, 58% (195 units), were between $300 and $800K, as has been the case in previous years. In that regard, most of the re-sale condo/TH market in B-CC has remained stable and with no major trends to report. The biggest change has occurred in the upper bracket condo/TH market. In 2014 there were 30 re-sale units sold over $800K with an average price of $1,865,000, a significant 26.3% increase from 2013. Five of the units were priced over $2MM.

In our opinion, the North Bethesda condo market, along the Rockville Pike corridor also stands to benefit from the increase in condo values. Federal Realty’s Pike & Rose is now open, part of a larger Sector Plan, some new condos are scheduled for delivery in 2016-17, bringing about a much needed change to the area, with prices starting at $500 to $650 per SF.

We are excited about 2015 and the prospects for a more active seller market – CALL US! Now more than ever, sellers need to have a more experienced and knowledgeable advisor by their side, to make sure costly mistakes are avoided. This is a time when expertise and experience matter most and can cause you to gain or lose thousands of dollars.

Best wishes for 2015 from all of us at BethesdaCondo.com!

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