Appreciation in close-in Bethesda/Chevy Chase

[Anonymous]

5% per year seems low. I’m in CCMD and would estimate it’s closer to 10% per year

[Anonymous]

We bought our house in Bethesda for $1.675 million in 2017. It’s now worth $2.9 million on Zillow but based on recent sales in the neighborhood, homes are going for a few hundred thousand over asking price. It is easily worth $3+ million.

[Anonymous]

Anonymous wrote:We bought our house in Bethesda for $1.675 million in 2017. It’s now worth $2.9 million on Zillow but based on recent sales in the neighborhood, homes are going for a few hundred thousand over asking price. It is easily worth $3+ million.

Without any renovations? Just straight appreciation? Where in Bethesda?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:9,49% for our house in close-in downtown Bethesda, over 14 years, taking into account mortgage, property tax, maintenance and renovation costs.

Per year? Or overall (over all 14 years)?

It's return on investment overall, using a calculator on a real estate website. Our house value on paper has nearly doubled during that time frame, but the calculator takes into account the amount of downpayment, details on mortgage cost and renos, taxes, etc.

Huh? Taxes and mortgage have no bearing on appreciation (= change over time in what a property is worth).

[Anonymous]

Doesn’t it have to plateau? There can’t be that many people that have this much money. Once you get to $3-4M, will appreciation stagnate? It’s hard to imagine that 10 years from now there will be a bunch of $5m homes that have buyers that can afford them.

[Anonymous]

Depends when you bought and where. We bought in 2017 and listed our house last year for what would have been a 3% appreciation per year and didn't get many offers til we dropped the price to a 2% appreciation per year. And we did some improvements to the house. I'm surprised at the 10% per year appreciation people. Would love to see evidence of a house where that actually occurred in recent years in close in CCMD (absent a big renovation that gutted the kitchen or increased the square footage).

[Anonymous]

Anonymous wrote:Depends when you bought and where. We bought in 2017 and listed our house last year for what would have been a 3% appreciation per year and didn't get many offers til we dropped the price to a 2% appreciation per year. And we did some improvements to the house. I'm surprised at the 10% per year appreciation people. Would love to see evidence of a house where that actually occurred in recent years in close in CCMD (absent a big renovation that gutted the kitchen or increased the square footage).

The evidence is every house that sold in 2022/2023 that had previously sold in 2013-2019 (except yours). Prices (on average) increased 40% between 2019 and 2023. I am sorry you overpaid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Depends when you bought and where. We bought in 2017 and listed our house last year for what would have been a 3% appreciation per year and didn't get many offers til we dropped the price to a 2% appreciation per year. And we did some improvements to the house. I'm surprised at the 10% per year appreciation people. Would love to see evidence of a house where that actually occurred in recent years in close in CCMD (absent a big renovation that gutted the kitchen or increased the square footage).

The evidence is every house that sold in 2022/2023 that had previously sold in 2013-2019 (except yours). Prices (on average) increased 40% between 2019 and 2023. I am sorry you overpaid.

Really? I'd love to see the source of that data. Please link to it.

[Anonymous]

Anonymous wrote:Depends when you bought and where. We bought in 2017 and listed our house last year for what would have been a 3% appreciation per year and didn't get many offers til we dropped the price to a 2% appreciation per year. And we did some improvements to the house. I'm surprised at the 10% per year appreciation people. Would love to see evidence of a house where that actually occurred in recent years in close in CCMD (absent a big renovation that gutted the kitchen or increased the square footage).

Desirable home appreciated, think 2.3M became 3M. If you’re living in a tear down then there are smaller increases.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Depends when you bought and where. We bought in 2017 and listed our house last year for what would have been a 3% appreciation per year and didn't get many offers til we dropped the price to a 2% appreciation per year. And we did some improvements to the house. I'm surprised at the 10% per year appreciation people. Would love to see evidence of a house where that actually occurred in recent years in close in CCMD (absent a big renovation that gutted the kitchen or increased the square footage).

The evidence is every house that sold in 2022/2023 that had previously sold in 2013-2019 (except yours). Prices (on average) increased 40% between 2019 and 2023. I am sorry you overpaid.

Really? I'd love to see the source of that data. Please link to it.

I doubt it exists except in the delusions of a realtor. If you look at Redfin's chevy chase report, you can sort by type of house and see the 1,3 and 5 year trends. It's definitely not that high.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Depends when you bought and where. We bought in 2017 and listed our house last year for what would have been a 3% appreciation per year and didn't get many offers til we dropped the price to a 2% appreciation per year. And we did some improvements to the house. I'm surprised at the 10% per year appreciation people. Would love to see evidence of a house where that actually occurred in recent years in close in CCMD (absent a big renovation that gutted the kitchen or increased the square footage).

The evidence is every house that sold in 2022/2023 that had previously sold in 2013-2019 (except yours). Prices (on average) increased 40% between 2019 and 2023. I am sorry you overpaid.

Really? I'd love to see the source of that data. Please link to it.

I doubt it exists except in the delusions of a realtor. If you look at Redfin's chevy chase report, you can sort by type of house and see the 1,3 and 5 year trends. It's definitely not that high.

You think houses have only appreciated 2% per year since 2017, while inflation is up 25-30%? Right...

[Anonymous]

We bought in 2021 in chevy chase. zillow saying our home value went up by 20 percent. Reality is likely more given the handful of comps and the improvements we have done.

[Anonymous]

Anonymous wrote:Depends when you bought and where. We bought in 2017 and listed our house last year for what would have been a 3% appreciation per year and didn't get many offers til we dropped the price to a 2% appreciation per year. And we did some improvements to the house. I'm surprised at the 10% per year appreciation people. Would love to see evidence of a house where that actually occurred in recent years in close in CCMD (absent a big renovation that gutted the kitchen or increased the square footage).

This is really surprising. I have a couple of friends who bought in CC MD around the same time, and they're easily at 40-50% appreciation. Maybe it's the price bracket? They were both around $1.25 million, so maybe they had more room for appreciation than you.

[Anonymous]

Anonymous wrote:We bought in 2021 in chevy chase. zillow saying our home value went up by 20 percent. Reality is likely more given the handful of comps and the improvements we have done.

Your single anecdote does not constitute actual data.

[Anonymous]

Redfin estimate gives me 24% appreciation since we bought in 2021. CCMD great location, great house.

I believe it too, even though it seems insane - houses around us are going under contract in hours for way more than I would anticipate give rates right now.