After listing a Victorian row home in Mount Pleasant, which received multiple offers, I thought it'd be interesting to take a look at the Mount Pleasant neighborhood and its evolution over the years. I ran a Competitive Market Analysis (CMA), dating back to 2012, examining one of Northwest DC's most sought-after communities. The criteria used was pretty simple:
- Row home;
- 2-4 bedroom;
- 2+ baths; and
- Mount Pleasant neighborhood
Median Number of Days on the Market
As you can see, homes in Mount Pleasant are a hot commodity, moving quickly, with properties exiting the market within a week or less! In a market this fast, it's important to work with an agent that understands the urgency and competitiveness of each scenario.
Low Sale Price vs High Sale Price
The cost of entry into Mount Pleasant has steadily increased from approximately $500,000 in 2012 to about $650,00 in 2014. Data for 2015 is only through May 31st, but we're likely to see an increase in most of the statistics, as the buying season (Spring/Summer) is heating up. On the upper end of the price scale, we're seeing a bit of an uptick for High Sale Price, with a high of $1.255 million in 2014.
Median List Price vs Median Sold Price
Sellers in 2013 received about 107% of list price, but since then, the numbers are hovering closer to 100% of list price. Does this mean the market is getting less competitive or are sellers now pricing homes at market rate? There could be an argument for each, but in reality it is likely a bit of both (as well as numerous other factors that I'll omit for your sake). Nonetheless, it'll be interesting to see how things turn out in 2015...
*January 1, 2015 to June 3, 2015
What does all of this mean?
Buyers: If you're interested in making Mt. Pleasant your new neighborhood, expect to be operating in a competitive real estate market and be sure to secure a steadfast agent. When competing with multiple buyers for a home, just remember, the seller is looking at the terms of your offer, so you'll want to make it as attractive as possible. However, you should always conduct a home inspection with a quality home inspector. And before you go house-hunting with an agent, be well-aware of the terms of the agent's compensation, as this could decide whether you actually get to see your next dream home.
Sellers: If you're looking for change in scenery or need a few more bedrooms, now is the time to consider selling. A balanced market has 4 months of inventory, and a buyers' market has 6+ months of inventory. Right now, DC has between 1.5-2 months inventory...so it's a very, very strong sellers' market. Be sure to work with an agent who will market your home properly, and don't be fooled by real estate commission gimmicks.