The highly popular neighborhood of Logan Circle has been having a heyday for the past few years with surging prices and plummeting days on market, but the numbers for the past few months could show early signs of a slowdown.
Looking at the chart above, four of the past five quarters had median sales prices that were lower than the same time period in 2014.
Furthermore, just looking at the shape of the graph it looks like the price bubble has come back down to earth.
Usually steady price decreases are a result of increasing inventory, but that isn’t the case here. Logan Circle has showed a remarkably steady pipeline of the same number of homes entering the market each year.
Rest assured, there is still healthy demand for Logan Circle. Days on market are routinely under the two week mark and closed sales prices are usually at or above the asking prices. These are all signs of strong activity, so there is no need to worry about a crisis in the making. But the early warning signs suggest things have softened when it comes to price points.
Are there any agents out there who have seen the same thing happening? If so, we would love to know what you think the reason is.
Are other city hotspots taking the place of Logan Circle’s popularity? Are the lines at that Whole Food just too long? Another reason? Let us know in the comments.
Corey Hart is the Senior Product Manager and data analyst at RealEstate Business Intelligence, a subsidiary of MRIS.