Potomac real estate market update for March 2012

It’s been awhile since we have covered the Potomac real estate market, so to correct my omissions, I will make up for lost time.  The first graph I want to review is the median asking price of homes for sale in Potomac, and this is a pretty active graph, that doesn’t actually tell us too much.  Starting with the black line, which tracks the prices on a weekly basis, we can see that three years ago, the median asking price was just a tick below $1.35 million.  Since that time, we have seen a high over $1.66 million and prices down to about $1.21 million, a difference of $500,000!  But comparing where we are today to where we were in mid March of 2009, we haven’t moved at all!  Home values are at exactly the same spot.

Potomac homes for sale asking prices March 2012

If you prefer to view something closer to a trend line, then look at the gold line, which takes a three month average of the median prices each week, and then repeats, so normally you end up with a much smoother line, because the weekly volatility gets averaged out.  But the gold line above still looks pretty active.  But even looking at the trend line, our most current measurement still comes in remarkably close to 2009’s value.

Potomac real estate inventory March 2012

One measurement that has seen some movement worth reporting on is the number of Potomac homes for sale that are available at any given time.  The chart above shows us that 36 months ago there were approximately 265 homes for sale in Potomac MD, but even with a recent uptick in inventory levels, there are less than 200 units currently available.  That is about a 25% reduction in the number of homes that are available to buyers, which we would normally associate with rising prices.  But as we established above, the last few months have really seen a significant drop in prices for this area, which seems to be corresponding with the sudden inventory rise.  This is certainly something to keep our eyes on as spring continues.  If we get a sudden glut of homes hitting the market, it is quite likely that we will see prices drop even further.

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