Markets & Economy

Has the Logan Circle price bubble popped?

The market is slowing in Logan Circle, but it may not be cause for concern

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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 w...