Photo by Saberwyn
Real Estate Roller Coaster: The Wild Mouse Market in Washington DC
A Wild Mouse roller coaster is one with many breakneck turns but without the sudden, steep inclines and declines of other coaster designs.
The Washington DC real estate market has felt more like a Wild Mouse than a bobsled, loop-the-loop, inverted, suspended, or flying coaster since the bubble prick of late 2005. DC real estate has seen modest declines and a rapid recovery compared to most of the US. Though DC led the national market during the decline, we experienced many sharp turns.
2006 Washington DC Real Estate Market
In 2006, everything was down except average list prices for sold homes, which actually increased 1.47%. Average Sold Price was only down 1.11% and Median Sold Price 2.57% for 2006. Average Original Sold Price to Original List Price Ratio dropped 4.31%.
Sharp turn: Not surprisingly, the number of attached and detached units sold was down in low double digits and average Days On Market had almost doubled.
2007 Washington DC Real Estate Market
2007 saw further increases in Days On Market, which rose 21.43%. Average sold price ticked up 1.83% and Average list price for sold units rose 1.91%.
There were small losses in Average Sales Price to Orig. List Price Ratio, Ratio of Average Sales Price to Average Orig. List Price, and Attached Average Sold Price. Overall volume was down slightly, by 2.20% from 2006.
Sharp turn: The Detached home market experienced quite a bump with a 14.39% increase in average sold price while the number of detached units sold dropped about the same percentage *14.69%).
2008 Washington DC Real Estate Market
In 2008, Average DOM rose to 79, list prices continued their gradual incline, Sold to List Ratios continued their gradual decline.
Sharp Turn: Sold volume plummeted more than 24%, partly because sellers and buyers were waiting for signs of recovery, and new condo inventory was waning (Average Sold Price for Condos & Co-Ops rose 1.43% in 2008).
2009 Washington DC Real Estate Market
Sold volume was back up in 2009, but only by 4.08% after the drop of almost 25% in 2008.
DC's condo shortage worsens.
14.99% more Attached homes were sold in 2009 than in 2008, and 20.22% more Detached homes were sold year-over-year.
Sharp Turn: Average sold price for Detached homes dropped 18.38% compared to an across-the-board Average Sold Price of -9.97%. Developers re-start plans for new condominiums.
2010 Washington DC Real Estate Market
Sharp Turn: The entire market in recovery with positive trends across the board. Boutique and smaller-scale condominium projects start selling and new large-scale condominium projects are on the boards.
2011 Washington DC Real Estate Market
During 2011, volume did not make a dramatic upswing, but prices continued to trend in a positive direction after stabilizing in 2010.
Sharp Turn: The big cranes return to DC's skyline as new condo and apartment building projects start construction.
2012 Washington DC Real Estate Market
The 2012 Washington DC real estate market picture has yet to complete, but if there was an image to sum it up, it would be a picture of construction cranes.
The DC skyline is once again full of them as development projects multiply like...well...mice! There are so many large-scale development projects in DC that when the current roster completes, the District of Columbia will look much different that it does today. One thing is certain: DC will remain a Wild Mouse Market.
Statistics by RBI (Real Estate Business Intelligence).
Example of Wild Mouse roller coasters from Coasterpedia:
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