Bethesda, Maryland, with its easy access to Washington, D.C. is snapping back from a bad winter and other influences with brisk housing sales, say local Realtors.

"While the market was affected by a number of things in the first quarter of 2003," says Realtor John Webber, "- the dreadful winter, the uncertainly caused by the war in Iraq, the unemployment figures, the US economy in general, and general consumer confidence (all have played a part), it seems that, when Spring finally came, we leaped into a very lively market akin to the one we saw in 2002 and that has continued into the summer. In July it was a record month for sales in the county."

Webber says it is a seller's market, but it is slowing in certain segments.

"Days on the market are up over last year," he explains. "In other segments, houses are flying out the door. Houses priced right (attempting to seek modest gains) and in top or good condition are selling fast while overpriced homes will languish."

"Based on what I saw on the market in the $400,000 to $600,000 price range over the weekends of 6/7th and 13/14th September, and seeing the homes which sold during the week and those that didn't, correct pricing was a key across the board."

"For buyers, there is not the same urgency to make a decision as there was back in the spring. However, there is little on the market at all in the down-county areas such as Bethesda. Interest rates have gone up by 1 percent on a 30 year fixed to the low 6 percent range. Will this affect the market? Maybe in the lower end a bit where qualifying might be tighter and cash-poor buyers wanting 100 percent loans will have pay in the mid-seven percent range. High? Well, only in relation to where we've been; historically, that's not bad."

"Bethesda, along with Chevy Chase, Kensington, Silver Spring and parts of Potomac, is prized for its convenience for those who work in the District of Columbia or along the 270 Research Corridor," say Realtor Mary Sheridan. "The west route of the Metro Red Line (subway) goes from DC to Friendship Heights and other Bethesda stops up through Rockville to Gaithersburg (Shady Grove). Another attraction of Bethesda is the medical complex just north of the business district - Bethesda Naval Hospital, Uniformed Services University of Health Sciences, the huge National Institutes of Health, and the National Library of Medicine. Bethesda also has Suburban Hospital and the Hughes research complex."

About the market, Sheridan says, "Most homes are older, with lovely mature yards and solid construction. The new construction is primarily tear-downs of older homes or dramatic renovations, with a few new-home areas. The local market continues very active, with properties moving quickly and often over listing price. It is crucial to have an efficient knowledgeable buyer's agent, to be preapproved, and to be ready to decide quickly. Bethesda prices are not inexpensive, but those who invested there have done very well and enjoy a convenient commute, excellent public and private schools, good shopping, and a wonderful variety of fine restaurants. There are far more properties available in other areas and the number of properties in the less expensive ranges will encourage many buyers. Many of these neighborhoods are also mature communities with solid construction and charm, near Metro stops and the county parks for which Montgomery County is justly famous."

Say Realtors Barry Cogan and Ibi Sofillas, "The latest monthly real estate numbers are out, and they show that demand for homes still exceeds supply, maintaining the upward pressure on home prices in Montgomery County, Maryland, Washington, DC, and Northern Virginia. For Montgomery County, the median price of homes sold last month compared to the same time last year was up 20.65 percent, and listings were selling, on the average, at 98.84 percent of their asking price. The average time on the market for a home was 22 days, as compared to 19 days last year, indicating a slightly slower but still strong real estate market."

"In Washington, DC, the median price of homes for last month compared to the same period last year was up 18.34 percent, and listings were selling at 98.30 percent of their asking price, on average. Homes were on the market an average of 35 days, compared to 35 days last year. In Alexandria, Virginia, the median price of homes was up 30.52 percent for the same time period, and homes were selling at an average of 99.06 percent of their asking price. Homes were on the market an average of 20 days, compared to 14 days last year."

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Published: September 17, 2003

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