The median price of a home sold in Montgomery County last month hit $425,000, the highest figure for August in the past 10 years, according to a regional Realtors group.
The Greater Capital Area Association of Realtors (GCAAR) based the median price on an analysis of 1,183 sales. Half of the homes sold were on the market no more than 21 days, GCAAR reported, while the average home was on the market for about 45 days.
Peg Mancuso, a Chevy Chase real estate agent, said home values are going up in part because people are migrating from the suburbs to pricier downtown neighborhoods.
“Many young people have maybe sold their original homes and are moving into the center of Bethesda,” said Mancuso, GCAAR’s immediate past president. “They want the convenience of Metro and access to transportation.”
The lack of real estate on the market in recent months is also contributing to the trend, said Jane Fairweather, a Bethesda real estate agent.
“I think the fact that the supply has been low keeps prices firm or slightly higher,” she said.
Fairweather added that homes on the market for less than $1 million are selling more quickly than properties in a higher price bracket. She said the increase in housing prices differs depending on the neighborhood.
The $425,000 price in August was 1.7 percent higher than the $418,000 median sale price for homes in August 2016. It’s also a significant increase from the recession years of 2009 to 2012, when homes sold for an average median price of $372,000, according to the real estate organization.
Fairweather said more properties have gone up for sale since August ended, and the market could cool down in coming months.
“I’m noticing every day in my email agents announcing price reductions in their listings,” she said.
But Mancuso said she expects the trend of moving into more urbanized areas will continue for years to come.