loading...

Above Asking with No Contingencies: The Climate of the DC Housing Market in 2018

by UrbanTurf Staff

The home in Chevy Chase DC that received 11 offers.

A few weeks ago, a small one-bedroom unit with nice finishes came on the market on Logan Circle. Amir Taba of TTR Sotheby's International Realty showed his client the listing, the client liked it and so Taba reached out to the listing agent. As it is in the DC housing market these days, Taba wasn't the only interested party. The agent had received 24 other showing requests for the condo, and several parties were indicating that they were going to submit an offer. 

"We got our offer in quickly," Taba explained. "We were all-cash, over list price, no contingencies, and we were able to lock it up. Had we not been all-cash and substantially over list price, we wouldn't have even competed." 

Multiple offer stories in the DC housing market have been a dime a dozen over the last couple years, but as the market got off to a bit of a slower start this year, it was unclear how competitive the landscape would be. In the last several weeks, however, the market has returned to the frenzied pace of years past. 

"All neighborhoods are selling and all price ranges are selling. The one thing I'd say about the market is it's inconsistent," said Daryl Judy of Washington Fine Properties. "It's not this crazy market where you can just throw a number on a house and think it'll sell. People are very discerning and they're looking closer as to whether homes are good investments and will hold their value."

There are two factors that have been a constant in the DC area market that keep it competitive: a low inventory of homes for sale and a high level of buyer demand. Andrew Strauch of Bright MLS recently told UrbanTurf that there is a 1.7 month supply of homes on the market in DC; the benchmark for a healthy market is six months, a level that the city has been well below for years. As interest rates creep towards 5 percent, buyer demand could diminish and price growth could slow, but that hasn't happened yet. 

A home in Shaw that sold for $136,000 above its list price in May.

Case in point: Kathryn Schwartz of Wydler Brothers recently listed a home in Chevy Chase DC that received 11 offers. 

"Every offer but one had zero contingencies; all of the offers were getting financing, but ten got rid of their financing contingency," Schwartz explained. On the other side of the city near Union Market, Washingtonian recently highlighted a home that received 17 offers and sold for $338,000 over list price. 

Many DC real estate professionals believe that the competition in the market has made new construction a more enticing option for buyers, as the ability to select a home often six months prior to delivery (and even potentially choose your own finishes or features) can offer some measure of security in a hectic market.

"This year, we've outpaced last year's sales pace by 10 percent," shared Chris Masters of real estate sales and marketing firm McWilliams|Ballard. "Buyers are hungry for new product at every level, but the mid-range product is kind of what's moving the needle. We see things spending a little more time on the market when you get above that $550,000 price point; it's still absorbed, it just takes a little bit longer."

As prices rise and competition is commonplace, many homebuyers are also expanding the geographic parameters of their search. A few weeks ago, UrbanTurf looked at the neighborhoods in DC where homes on the market were receiving the highest volume of offers. Four of the top five were east of the Anacostia River. 

"We have two lots on V Street right around the corner from where Busboys and Poets will be," Darrin Davis of Anacostia River Realty told UrbanTurf, speaking of Anacostia. "It's not on the market yet, but I posted it on social media and have been getting a lot of requests. It's prime real estate, and a lot of people in the area, especially the Anacostia area, know what's coming." 

Davis has focused on the East of the River real estate market for the last sixteen years, and says that buyers are now coming from other parts of the city because they know that the area has some of the last affordable neighborhoods in DC. 

Despite the solid seller's market that the region is experiencing, the climate may be creeping back in favor of buyers. Andrew Strauch noted earlier this month that he is encouraged by the increase in listing activity in the region which could offer more options to prospective buyers and balance out the market. 

The economic climate may also play a role. Long-term interest rates reached their highest level in seven years this week, and while it isn't affecting buyer demand yet, the idea that rates may eventually hit 5 percent will undoubtedly begin to affect buyers' psyche.

Similar Posts:

This article originally published at https://dc.urbanturf.com/articles/blog/above-asking-with-no-contingencies-the-climate-of-the-dc-housing-market-in-/13996

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!

Northern Virginia

Profiles of 14 neighborhoods across Northern Virginia

Ballston
Looking to Give People A Reason to Stay Past 6pm
Clarendon
Happily Straddling the Line Between City and Suburb
Columbia Pike
Arlington’s Neglected Stepchild is Getting a Makeover
Crystal City
Turning Lemons into Lemonade
Lyon Village
Developing An Air of Exclusivity?
Rosslyn
Hitting Its Growth Spurt
Shirlington
An Urban Village Hitting Its Stride
Del Ray
Virginia’s Small Town Near the Big City
Eisenhower Avenue
The Vibrancy Might Take a Few Years
Huntington
The Quiet Neighborhood By the Beltway
Old Town
Mayberry By The Potomac
Parkfairfax
132 Commerical-Free Acres
Downtown Falls Church
Staying the Same in the Midst of Change
Tysons Corner
Radical Change Could Be On The Way

See more Northern Virginia »

Maryland

Profiles of 14 neighborhoods in suburban Maryland

Annapolis
Small-Town Living in the State Capital
Bethesda
Bedroom Community Gets Buzzing Cache
Cabin John
In With The New While Maintaining the Old
Chevy Chase
Affluence, Green Lawns and Pricey Homes
Downtown Silver Spring
Experiencing a Resurgence After a Bumpy History
Potomac
A Suburb on Steroids
Rockville Town Square
Despite the Dynamism, Still Somewhat Generic
Takoma Park
More Than a Little Bit Quirky
Wheaton
A Foodie Magnet on the Verge of Change
Capitol Heights
Kudzu, Front Porches and Crime
Hyattsville
Glass Half Full or Half Empty?
Mount Rainier
Artists, Affordable Homes and A Silo Full of Corn
National Harbor
A Development Rises Next to the Potomac
Riverdale Park
A Town Looking For Its Identity

See more Maryland »

Northwest DC

30+ neighborhood profiles for the city's biggest quadrant

16th Street Heights
DC's Sleeper Neighborhood
Bloomingdale
Where (Almost) Everyone Knows Your Name
AU Park
One of DC’s Last Frontiers Before the Suburbs
Brightwood
DC’s Northern Neighborhood on the Cusp
Burleith
DC’s 535 House Neighborhood
Cathedral Heights
Do You Know Where That Is?
Chevy Chase DC
Not to Be Confused With the Other Chevy Chase
Cleveland Park
Coming Back After A Rough Year
Columbia Heights
DC’s Most Diverse Neighborhood, But For How Long?
Crestwood
An Island of Serenity East of the Park
Dupont Circle
The Best of DC (For a Price)
Foggy Bottom & West End
Where the Institutional Meets the International
Forest Hills
Ambassadors and Adventurous Architecture
Foxhall Village
350 Homes Just West of Georgetown
Friendship Heights
A Shopping Mecca With a Few Places to Live
Georgetown
History, Hoyas and H&M
Glover Park
One of DC’s Preppier and More Family-Friendly Neighborhoods
Kalorama
A Posh View From Embassy Row
LeDroit Park
A Quiet Enclave in the Middle of the City
Logan Circle
Trendy Now, But Not By Accident
Mount Pleasant
Sought-After Homes Surround Main Street in Transition
Mount Vernon Triangle
From Seedy to Sought-After
Palisades
The Long, Skinny Neighborhood at the City’s Northwest Edge
Park View
It’s Not Petworth
Penn Quarter/Chinatown
DC’s Go-Go-Go Neighborhood
Petworth
Getting a Vibrancy of Its Own
Shaw
The Duke’s Former Stomping Ground
Shepherd Park
DC’s Garden of Diversity
Spring Valley
A Suburb With a DC Zip Code
Takoma
Not To Be Confused With Takoma Park
Tenleytown
Not Quite Like Its Neighbors
U Street Corridor
The Difference a Decade Makes
Woodley Park
Deceptively Residential
Adams Morgan
No Longer DC’s Hippest Neighborhood, But Still Loved by Residents

See more Northwest DC »

Southwest DC

The little quadrant that could

Southwest Waterfront
A Neighborhood Where A Change Is Gonna Come

See more Southwest DC »

Northeast DC

Profiles of 10 neighborhoods in NE

Brookland
New Development Could Shake Up Pastoral Peace
Deanwood
A Little Bit of Country Just Inside the District’s Borders
Eckington
Not to Be Confused With Bloomingdale
Fort Totten
Five Years Could Make a Big Difference
H Street
A Place To Party, and To Settle Down
Langdon
The Northeast Neighborhood That Few Know About
Michigan Park
A Newsletter-On-Your-Doorstep Community
NoMa
Evolving from a Brand to a Neighborhood
Rosedale
Ripe for Investment Right About Now
Trinidad
The Difference 5 Years Makes
Woodridge
Big Houses, A Dusty Commercial Strip and Potential

See more Northeast DC »

Southeast DC

6 neighborhoods from Capitol Hill to East of the River

Capitol Riverfront
Still Growing
Hill East
Capitol Hill’s Lesser Known Neighbor
Congress Heights
Gradually Rising
Hillcrest
Notable for Its Neighborliness
Historic Anacostia
Future Promise Breeds Cautious Optimism
Eastern Market
A More European Way of Living

See more Southeast DC »

Upcoming Seminars ▾