If you need assistance, please call 301-349-7939

Let's Talk DC Dirt. What Are The Projected Trends? And How Can We Make Solid Predictions?

Thursday, July 07, 2016   /   by Robyn Thompson

Let's Talk DC Dirt. What Are The Projected Trends? And How Can We Make Solid Predictions?

Jamestone-Atlanta-New-Homes-Streetscape.jpg
The prices of homes in the DC area generally were leveling out for a bit during past months and it seems as though prices are going to stay flat and steady for the near future. So those who bought during the boom have more waiting to do for prices to rise. However, anyone fearing an oncoming bubble can rest easy.

But wait...
Let me stand corrected and say that one anomaly here is the "actual District". That's right. Mud anywhere within the diamond on the map is seeing upward motion. Spots that are remotely close to any metro station in the entire DC area, are also seeing prices dance a bit. However, in general, and as a whole, it is safe to say that DC region market prices are stone and not looking like they want to move during the next couple months. The market is strong nontheless. But even with a small inventory, prices aren't seeming to shift anytime too soon. DC is not even the only market that has been experiencing this.

John Wake, a polished Pheonix real estate agent and economist shared in his blog Real Estate Decoded some data that supports this current phenomenon of markets where only certain spots are seeing spiking prices while others in the same region are flat. 

Wake used some unlikely data to dissect this price trend. One word sums it up. "Zestimates".

Turns out that Zillows "Increasing Values" data gives a solid ballpark of what percentage of homes in any given market saw value increase during the past year. Wake realized the usefulness of this uncanny tool. While we all, Wake included, are aware of how inaccurate the Zestimate is, when used along with  The S&P/Case-Shiller Home Price Index , the Index actually showed him that the"Increasing Values" is a generally decent forecaster. 

One moral of the story here is that Zillow is a forest tool. Not a tree tool. Specific home info will be far less accurate than market changes when it comes to Zillow. 

“Instead of just looking at prices, because prices move so slowly, can I get a better feel for changes in the market?” Wake said. “That’s the concept behind it.”

It is worth it for the more analytical home-shopper or agent to look into. 

Stillwell Group
Lee Stillwell
10244 River Rd.
Potomac, MD 20854
301-349-7939
301-349-7804
240-252-5833 - ext 104

The data relating to real estate for sale on this website appears in part through the BRIGHT Internet Data Exchange program, a voluntary cooperative exchange of property listing data between licensed real estate brokerage firms in which Stillwell Group participates, and is provided by BRIGHT through a licensing agreement. The information provided by this website is for the personal, non-commercial use of consumers and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Some properties which appear for sale on this website may no longer be available because they are under contract, have Closed or are no longer being offered for sale. © 2019 BRIGHT, All Rights Reserved Information Deemed Reliable But Not Guaranteed. Data last updated: August 20, 2019 8 AM.