Glover Park row house sales prices averaged a lofty $995,000 in 2018, though a little bit down from the record level of 2017. The graph below shows that these home prices have tripled since 2000! We saw five years in a row of doubled-digit growth in prices leading up to the financial market collapse - we all knew that was unsustainable, right? Real estate prices topped out in late 2005 (which was the start of the mortgage crisis), then hit the doldrums and average levels remained in the $700,000's for eight straight years. Yet, when you look at the disaster wrought in much of the rest of the country, this was a best-case scenario, and we were lucky to own in DC during all that.
The market energized in 2013 and values grew with eye-popping gains hitting a 20% annual increase and averaging over $1 million in 2017! 2018 still was quite strong though dropped back a bit on average for a few reasons: 1) interest rates began creeping up in the summer which caused a slight fall/winter lull, 2) with more equity and easier financing rules, owners became more mobile again and the neighborhood saw 51 row house sales - a huge increase over 2017 and the trend for the prior few years, 3) increasing values were bumping up against the hard fact of income growth, which has not been keeping pace, and 4) a few large-house rebuilds at high prices notched up the average in 2017 (one as high as $1.7 million).
What has been driving this long-term trend of growth in property value in Glover Park with little downside? Here are a few points:
Demographic shift - for a couple of decades now the neighborhood has attracted more and more families (often two-income families) with small children or planning to have children.
Schools - The improved ratings and popularity of the public schools (Stoddert and Hardy) have compelled families to stay in the neighborhood longer, leading to a trend of lower inventory combined with the desire of home buyers to factor this value into home prices.
The Government - The Man has been good to us, Federal government employment contractor opportunities, and associated private enterprise saved the real estate market from disaster during the financial crisis and provide and a strong average income level which has helped drive home prices. This applies to all of DC, not only Glover Park.
Downsizing, City Life and Renovation - it's not only families who have been attracted to the neighborhood. Glover Park has attracted suburban home sellers who seek a vibrant city scene and smaller, nicely updated houses. The growth in property values and equity has given homeowners as well as investors/speculators the opportunity to beautifully renovate their houses at a record pace.
Interest Rates - it can't last forever, but it has lasted this long so far! If you remember the early 90's and double-digit interest rates and houses that took two years to sell, remember that history tends to repeat itself. Yet, this continued long-term low rate environment has had a direct impact on property values.
Call/email/text me if you are thinking about buying or selling. We'll go through your needs and goals and lay out a plan to make it happen! firstname.lastname@example.org, 202-441-7008