Date: 08 Feb 2012 0 Comment Posted by: Kristin Cummins
As we continue to breakdown the performance of certain areas of the District and Virginia through 2011 we move on to the 20016zip code, which primarily includes portions of the following neighborhoods: American University, Cathedral Heights, Cleveland Park, Kent, Observatory Circle, Palisades, Spring Valley, and Wesley Heights.
A convergence of urban and suburban style living 20016 has a consistent supply of condos, yet an even greater supply of single family detached homes. We will compare and contrast these parallel markets in the charts below.
When we look at this inventory of sold listings through 2011 it is interesting to note that the condo and townhome/row house market stayed consistent throughout the year, while the single family detached tier saw an aggressive spike in activity through the summer months. Demographically this makes a lot of sense. A typical single family home buyer and seller has a family, and school years to take into consideration, so it is common for owners to wait to sell in the spring and summer months, and for buyers of single family properties to do the same.
This can certainly become a self perpetuating cycle where buyers wait because they want more choices, and sellers wait to list because they want more buyer competition. For condos, and in many cases, row homes the transaction demographic is typically younger singles, or couples who do not have to take school schedules and transitions into consideration. As a result the demand is based more upon buyer/seller readiness rather than other extraneous influences.
This chart showing days on market for each category confirms the same story from above. Increased buyer demand for single family detached homes matched the increased inventory giving this category of home the lowest days on market of the three tiers during the summer months when inventory ballooned.
Ultimately, regardless of the tier, we are looking at a display of good balance in the market. Whether inventory was steady or ballooning, demand from buyers was there to keep absorbing the supply. This is only a brief glimpse of the the market performance for 20016, and with the balance in the market this next chart showing relatively flat average prices should come as no surprise.
If you would like to see a full report for 20016 you may request one here.
Kristin, the founder of The Ramsbury Group, has been representing clients and redeveloping properties in the Washington DC area for over a decade. She has represented residential and commercial clients in transactions ranging from $200,000 to $4 million in value as well as commercial leases up to 15,000sf.