Amidst declining home values in Montgomery County, we still have a healthy market for homes in the upper brackets. In 2008, 770 homes priced $950,000 or more sold for a total of $1.1 billion (with a ‘B’). For all price ranges, about 8,500 homes sold for a total of $4.27 billion. So even though 770 homes represents only about 9% of the number of homes sold, this was over 25% of the total sales volume for the year.
Over 80% of all homes in this price range sold in Bethesda, Potomac and Chevy Chase. Of these areas, Chevy Chase has the lowest inventory with about 6.8 months available. Bethesda has 7.8 months and Potomac has 9.7 months worth of inventory. It’s a bit trite but true: in real estate, it’s all about ‘location, location, location’. In our market, the closer to metropolitan D.C., the more expensive the home.
Looking across the County, the area with the lowest inventory in this price range is (surprisingly) North Potomac. Granted, the market in North Potomac is very different that that of ‘the big three’. In 2008 the average sales price for Bethesda, Potomac and Chevy Chase in this price range was $1.4M, $1.6M and $1.5M respectively over a much larger number of sales. The average sales price in North Potomac was about $1,140,000 over just 29 sales.
The table below summarizes the units sold, active listings and available inventory for each area. Contact us for more information about a particular neighborhood or for more details on this analysis. What are your thoughts on this segment of the real estate market? Add a comment below and let us know.