I've been spending a lot of time in recent days on Redfin to not only find deals and listings that meet our buying criteria but also to identify DC real estate market trends that we could share with our private investors. Our investors love pie charts so I decided to do a quick analysis of homes that were sold over a 90 day period in a specific zip code in DC using Redfin's selling tool. Keep in mind that Redfin only shows those homes that hit the MLS so this may not be 100% accurate but it gives a realistic view of what is happening in DC's real estate market. Here is the criteria that I picked:
- Zip Code: 20010
- 90 days Period From June 30th to September 30th
- House, Town-House & Multifamily (No Condos)
- Maximum Sell Value of $600k
According to Redfin, there were 21 homes that matched this criteria. Out of these 21 homes sold, only 5 (23.8%) were sold at the original listed price with 12 (57.1%) selling under the listed price and 4 (19%) selling higher than the listed price.
What this pie chart tells us is that many of the sellers (investors or individual sellers) are listing their properties at the higher end of the market value for this neighborhood and hoping that they'll get lucky given the booming state of DC's real estate market. Obviously this isn't necessarily happening and according to Redfin only 4 out of 21 homes listed officially had price reductions so many of the sellers took lower offers.
Another thing that I wanted to look at was the median list price per square foot which came up to $387. In comparison and according to Redin; the overall median list per Sqft in Washington DC over the course of the 90 days was $489 so this zip code (20010) has some catching up to do which is not really that surprising given the fact that many of the homes sold in this area are rehabs and condo conversions.
As the chart below shows the median sales price was $500k with majority of the homes selling between $500-$600k.
The one thing that I wish Redfin would show is the number of days that each property sits on the market before it is sold. My guess is that many of these 21 homes did not sit on the market for too long but correlating this information with the sale price could identify additional trends.
This quick study gave us some data points that we'll use to evaluate deals and share with our network but hopefully it will also help others to sell their properties faster and for more money.