Even in today’s market, you’ll see sprawling new estates sprout up along River Road in Potomac. A few of our clients heard that the upper end of the market was really strong, and others heard it was really soft. So who’s right? Let’s take a look at the stats.
Sales History Since 2005
Our market peaked in 2005/2006, so I went back to 2005 to summarize all sales for homes listed $2M or higher:
The sales stats show the demand for $2M+ homes has steadily declined since 2006. I noted the Lehman Brothers Bankruptcy since it heralded the beginning of the current Great Recession. Still, credit for high-end properties tightened-up many months before that. My own personal benchmark was a very tough $1M closing in March of 2008. The buyer got what could have been the last jumbo loan with 5% down offered by Bank of America.
Taking a look at annual sales better shows this trend:
Location of 2M+ Sales
It’s no surprise that most of these home sales were located in Bethesda, Chevy Chase and Potomac. What may be a little surprising is that practically all sales in Montgomery County occurred here – 98%.
Days to Sell
Let’s look at one more metric: time required to sell. Compared to other price ranges, the most expensive homes have always taken longer to sell. Since 2006, the average number of days to sell has gone up every year.
As home prices have come down, home buyers in this price segment can get a lot more house for the money. Still, these trends tell us that downward pricing pressure is still very strong. Contact us and we can help guide your home search in this market segment of Montgomery County.