Shepherd Park, DC, Real Estate Market Prices, Trends and Forecast

With an effortless distance to urban work and play, along with the tight-knit community vibes of the suburbs, Shepherd Park provides the perfect balance for residents who call it home. Located at the northern tip of D.C. and bordered by Silver Spring, MD, the popular neighborhood offers easy access to amenities in downtown D.C. and Maryland while retaining its residential personality. Each year, neighbors enjoy a full calendar of local events, including a community picnic, yard sale, potluck dinner, Halloween parade, and the eagerly awaited annual garden tour.

The tree-lined streets of Shepherd Park feature a variety of home styles ranging from Spanish-style colonials and bungalows to farmhouses, split-levels, and Tudors with ample yards and beautiful gardens. If you're planning a move to northern D.C., don't overlook the Shepherd Park area. Here's what you should know about how the Shepherd Park, D.C., real estate market is changing in 2023.

Learning the predictions and trends in Shepherd Park's real estate market is the first step in finding the perfect property that will meet your needs. While inventory is typically low and competitive in Shepherd Park, price hikes are slowing in the D.C. area, which could represent new opportunities for prospective buyers. Here's an outlook on today's housing trends and how they'll shape what you can expect in the coming months.

Home values in Shepherd Park reflect the low inventory and highly desirable living conditions throughout the D.C. area. Although prices are still trending upward, increases are slowing down. As prices level out, buyers will have more opportunities to find a home that meets their criteria and budget.

After a recent series of rate hikes by the Federal Reserve, national interest rates are at their highest level in 22 years. Current mortgage interest rates in Washington, D.C., are 7.6% for a 30-year fixed mortgage and 6.7% for a 15-year fixed mortgage. Unfortunately, if you’re a buyer, this means the higher rates could cut into how much home you can afford in the D.C. area.

With one of the highest rent costs in the nation, the average price of a rental in D.C. is $1,785 each month. However, soaring interest rates force many would-be buyers into renting, dropping the rental vacancy rate to 5.5%. The increased demand for rentals could mean new opportunities for investors. At the same time, recent funding for affordable housing and infrastructure projects provides a potential avenue for investors to enter the market.

Shepherd Park is a cozy neighborhood with a population of around 3,000 residents. With few new builds in the area, population fluctuations remain minimal. As a result, home seekers can benefit substantially from the assistance of an experienced agent with extensive local knowledge of the area.

As residents flock to the area's hot job market and the highly desirable neighborhoods in D.C., low supply continues to drive housing trends in 2023. Although the population declined during the pandemic, there has been a resurgence of interest in the D.C. area, and the market remains highly competitive.

D.C.’s population declined between the summer of 2020 and 2021. While some of the largest jurisdictions recorded a second year of net population loss, D.C. recorded an overall population gain from July 2021 to July 2022. As more and more people move into an area where homes are already in limited supply, this drives up competition in the housing market.

Median home prices in D.C. are still growing over the course of 2023, but price hikes are slowing notably. The current median home price of $625,000 is only 3.7% higher than last month but is actually 3.3% down from the year prior.

In addition, new listings in D.C. have dropped by more than 23% since last July. Likewise, closed sales have been down by 12.7% since last year, while pending sales have similarly decreased by 6%.

These statistics indicate a continued slowdown in the market, primarily due to the higher interest rates and buyer hesitation. That said, buyers in the market can often access government-backed financing for their home purchase, easing the burden of excessively high down payments and interest rates. The number of active listings in D.C. is currently slightly down compared to July 2022 as well, and properties are spending an average of 29 days on the market, which is on par with last year.

Any real estate purchase is a significant investment, and there are many factors that you should take into consideration before embarking on your real estate journey. Shepherd Park provides residents easy access to the many amenities of downtown D.C. while maintaining its residential environment and tight-knit community atmosphere. With home prices leveling out, now may be the perfect time to buy.

Low supply and consistent demand make the housing market in D.C. one of the most competitive in the nation. If you're seeking a home in the highly desirable neighborhood of Shepherd Park, you need an expert on your side who has inside knowledge about available homes and new builds in the area. Look no further than our team at The Foley Group of Go Brent Realty.

As a leading team in D.C. and Maryland, we offer the highest level of knowledge and outstanding service to our clients. Get in touch with us today to start your search for Shepherd Park, D.C., real estate.