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Home Price Watch: Prices Rise 20% in Bloomingdale

by Lark Turner

Home Price Watch: Prices Rise 20% in Bloomingdale: Figure 1
Rowhouses in Bloomingdale.

Last week UrbanTurf began using new data from RealEstate Business Intelligence (RBI) to look at the real estate market in specific DC area neighborhoods. First up was Capitol Hill, where low inventory made for lower sales volume and rising prices.

This week we take a look at data specific to the Bloomingdale neighborhood. It should be noted that Bloomingdale covers a much smaller area than Capitol Hill, which means that a 50 percent increase in sales year-over-year translates to 15 homes selling so far in 2014, compared to ten at this time last year.

Bloomingdale is roughly bounded by Michigan Avenue to the north, Florida Avenue to the south, 2nd Street to the west, and North Capitol Street to the east.

Data from the 2014 RBI report for Bloomingdale reveals that the neighborhood housing market is quite hot compared to last year. Here are some highlights:

  • Sales volume went up dramatically in Bloomingdale in 2014. Total home sales so far this year come in at $8.4 million, compared to about $4.6 million last year, an 80 percent increase. As noted above, 15 homes have sold so far in 2014 versus ten at this point last year.
  • The average sales price in the neighborhood rose to $556,928 in 2014 from $462,830 last year, a 20 percent increase. The median sales price also rose by approximately 15 percent.
  • The average time that homes spent on the market dropped from 56 days in 2013 to 29 days in 2014.
  • As on Capitol Hill, sellers believe they can get more for their homes this year, as list prices rose 22 percent.

See other articles related to: home prices, home price watch, bloomingdale

This article originally published at http://dc.urbanturf.com/articles/blog/home_price_watch_bloomingdale/8383

15 Comments

  1. LJO said at 8:16 pm on Monday April 21, 2014:
    That's why it's called a bubble.
  1. Rick said at 8:21 pm on Monday April 21, 2014:
    That's the pic you show to represent Bloomingdale housing stock?! Need some of the classic, spire-adorned rowhouses
  1. Rell said at 8:26 pm on Monday April 21, 2014:
    @Rick, That's my block of Randolph and I consider that quintessential Bloomingdale! I have been renting their for 6 years...after reading this article, I wish I had bought back then...
  1. Matt said at 8:32 pm on Monday April 21, 2014:
    Just to be clear - these numbers only represent single family homes and exclude condo sales - correct?
  1. Lark Turner said at 8:44 pm on Monday April 21, 2014:
    Matt, These stats include closed sales for single-family homes and condos in Bloomingdale so far this year. That breaks down as follows: 10 condo sales, two three-bedroom rowhouses and three four-bedroom rowhouses. The data comes from the advertised subdivision of Bloomingdale. To be included in the count, properties would have to be advertised as being in the Bloomingdale neighborhood. Thanks, Lark
  1. Matt said at 9:10 pm on Monday April 21, 2014:
    Thanks Lark!
  1. Rick said at 9:27 pm on Monday April 21, 2014:
    @ Rell, Lol, no harm intended. I love all of Bloomie... just a bit partial to the 1st Street rows north of RIA. 😃 I think we all wished we had bought everything in sight pre-2010!
  1. TJ said at 9:35 pm on Monday April 21, 2014:
    FWIW, the triangle created by Rhode Island Avenue, Florida Avenue and 2nd Street, NW is also part Bloomingdale. Thanks for highlighting our slice of the District!
  1. Sam said at 10:07 pm on Monday April 21, 2014:
    @LJO: I doubt prices are going to crash here or elsewhere in DC. The market is too resilient (as seen during the recession) to collapse. Prices may cool a bit but there is always going to be huge demand in most parts of DC as there is very limited supply.
  1. DCDude said at 3:26 pm on Tuesday April 22, 2014:
    TJ: That triangle you discussed is NOT part of Bloomingdlale. It is Old City. And the houses shown above are typical of most of DC post 1906/08 but pre-1928. Most were constructed in the 20's. They are known as daylight houses and many were constructed by Wardman but are not exclusively built by Wardman. They should not be called Wardman houses for their design.
  1. B'Dale Res said at 5:07 pm on Tuesday April 22, 2014:
    If you look at a Baist Map of DC, you will see almost all homes were built in the blooming dale neighborhood by 1913. Not many, i.e. less than 20 were built afterwords and you can find those in select lots around the hood or primarily along 2nd northwest on the most western edge of Bloomingdale above RI Ave. There are also so many housing transactions in the neighborhood going on that this data is only a small snap shoot, since it is capturing advertised homes/condos.
  1. Enrique Peña Nieto said at 7:36 pm on Tuesday April 22, 2014:
    Famous last words: "It's different this time."
  1. Karl said at 12:50 am on Wednesday April 23, 2014:
    Other famous last words: "The sky is falling! We're doomed!"
  1. James said at 8:50 pm on Thursday April 24, 2014:
    and "Glad I didn't buy when DC was 'too expensive'--now I'm priced out of DC for life."
  1. ABD said at 3:02 pm on Sunday April 27, 2014:
    @ Enrique and Karl and LJO - the rental market, sales market, real estate construction market, and financing market are linked. You have to look at all 4 to figure out if we're in a bubble situation. High prices alone do not indicate that there is a bubble. On the demand side in DC, rents continue to rise and sales prices continue to rise. This is because there's high demand - especially among first time buyers who want to become owners in the face of persistent high rents. On the supply side, there is a lot of construction happening - mostly apartments, but there've been some reports of condo construction increasing as developers convert their projects. This means that rents may go down in the mid term as these apts deliver. This would take some pressure off of the for-sale market (those folks who wanted to buy because they felt they could no longer afford to rent - they can continue to rent). It may also encourage some folks who are renting out their homes in DC to sell - i.e. if they can't find tenants at a price point they like. However, this does NOT mean prices in the for-sale market are going to crash, because there has not been a major increase in supply for this market - and demand is extremely high. For sale supply will continue to lag demand (especially if there is job growth as the economy continues to pick up); and this will continue to prop up prices. The one factor that would have a moderating impact on prices is interest rates - if they rise significantly, prices will have to moderate or go down (that is, buyers at every price point can afford less house for the same money in the face of higher interest rates - so demand changes at each price point). Again, not a bubble scenario, just a moderating effect. What's most likely to happen in the near term is continued gentrification marching across the city as buyers get priced out of the neighborhoods that have already "arrived". If you're a buyer - buy now and consider the fringe - or be prepared to sit tight for a while, as the market more or less continues as is in the near term. If you're an owner who currently rents out their place - now is a fantastic time to sell; rents are going to go down, which will make it harder for you to find a tenant and you will get a great price by selling now. If you're an owner-occupant who wants to downsize- it's also a great time to sell. If you're an owner-occupant who needs more space- be prepared to sink the profits from the sale of your current place into the down payment for your new place, if you want to stay in DC.

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