Potomac MD Homes – May 2011 Homes For Sale Update

Normally, when writing these articles about Potomac MD homes, I look at one year of data.  Today, I will venture a bit outside of my normal comfort zone and look back two whole years!  Overall, I’d say that there have been a bunch of ups and downs, but after two years, we really aren’t too awfully far from we were at this time in 2009.  A bit lower, which is the wrong direction if you are a seller in Potomac, but not tragically lower.

Potomac MD homes for sale asking prices

Two years ago, the median asking price of Potomac MD homes for sale was between 1.35 and 1.38 million dollars, depending upon whether or not you were tracking the rolling trend line, or weekly data points.  Over the course of the next year, homes for sale in the Potomac area rose in value, quite a bit, by almost $200,000.  But in the past year, from this time in 2010 to our most current measurement, sellers have given back all of those gains, and maybe a bit more, to see current median asking prices of $1,300,000, for a $50,000 loss over two years.  Which, in the grand scheme of things, isn’t nearly as bad as you might have believed having read some of the horror stories in the press lately.

Potomac MD homes for sale inventory

The first graph I shared on this post was about asking prices, this next graph is illustrating two years of inventory data for Potomac homes.  This chart is a great example of why I like to look at two years worth of numbers ever once in a while, because our conclusion that we take from this graph will be much different if we look only at one year of numbers vs the full two years’ collection.

If we looked only at the last 12 months, we would see that there are more homes currently on the market today that May of 2010.  Using real numbers, there were about 200 Potomac homes on the market in early spring of 2010, but today there are 275, a huge jump, and one that might make us think that our current market is in horrible trouble and looking like something we have never seen before.

But looking back to May 2009 helps us keep everything in perspective.  Back then, there were 300 homes for sale, which is about 10% higher than today.  If I had just stated at the beginning of all of this that there 10% fewer homes on the market today than there were at this time in 2009, I think I could have written a pretty optimistic article.

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