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I am obsessed with data and love spreadsheets. My MBA was in International Finance so I think it is in my blood. I spent some time this week looking at first quarter data and going back 10 years to look at home pricing growth in DC and then more narrowly focused, fee simple sales in Northwest DC, where we tend to sell the most real estate.

There is so much talk about housing prices and interest rate increases, but I still believe DC is undervalued when compared to other capital cities around the world, and even other major cities in the US.

There is no question that the US is the most important country in the world, and DC is the most important city in the world. Further, the dollar remains the most stable currency.

We pride ourselves on helping clients make sound investment decisions and I know the Capital Region is a smart investment. We would welcome the opportunity to discuss the information below with you – there are a lot of numbers but it is important to see the consistent growth.
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Washington DC 1Q Home Sales Comparison
The DC housing market fired on all cylinders in Q1, driven by continued demand for prime and super-prime properties priced $5 million and above. Notably, when isolating the $5 million and above market, the number of sales increased 100% year-over-year, suggesting buyers are still seeking out costly homes despite the minimal level of negotiation. Overall, homes sold for an average 101.4 % of list price and had an average of 27 days on market.
Q1 DC Home Sales 5 Year Comparison By Price
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Q1 DC Home Sales Comparison Year-Over-Year
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Q1 Northwest DC Houses Sold Comparison
Source: BrightMLS
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Q1 DC Houses Sold Comparison
Source: BrightMLS
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The International Role of the U.S. Dollar
The conflict in Ukraine has showed us once again that the U.S. is the most important country in the world and that the U.S. Dollar is the most stable currency. For most of the last century, the preeminent role of the U.S. dollar in the global economy has been supported by the size and strength of the U.S. economy, its stability and openness to trade and capital flows, and strong property rights and the rule of law. As a result, the depth and liquidity of U.S. financial markets is unmatched, and there is a large supply of extremely safe dollar-denominated assets.
There is Widespread Confidence in the U.S. Dollar as a Store of Value
A key function of a currency is as a store of value which can be saved and retrieved in the future without a significant loss of purchasing power. One measure of confidence in a currency as a store of value is its usage in official foreign exchange reserves. As shown, the dollar comprised 60 percent of globally disclosed official foreign reserves in 2021. This share has declined from 71 percent of reserves in 2000, but still far surpassed all other currencies including the euro (21 percent), Japanese yen (6 percent), British pound (5 percent), and the Chinese renminbi (2 percent). Moreover, the decline in the U.S. dollar share has been taken up by a wide range of other currencies, rather than by a single other currency. Thus, while countries have diversified their reserve holdings somewhat over the past two decades, the dollar remains by far the dominant reserve currency.
Foreign Exchange Reserves
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Global Home Prices Rose at Their Fastest Rate for Nearly 18 Years in 2021
Istanbul, Turkey, was the top performer, with prices jumping 63% annually.

Housing prices across 150 major cities worldwide rose an average 11% in 2021, the fastest rate logged in nearly 18 years, according to a Knight Frank report released Tuesday.

Leading the surge were cities in the Americas, where housing prices increased 15% on average. Cities in the Asia-Pacific region lagged, registering an average 9% annual price increase, according to the agency’s Global Residential Cities Index for the fourth quarter of 2021. 

Overall, 140 cities saw prices increase in 2021, up from 122 in 2020.

Istanbul, Turkey, recorded an annual price growth of 63% year over year by the end of fourth quarter, the highest rate among the 150 global cities tracked. Turkey’s overall inflation rate stood at 36% at the end of 2021, according to Knight Frank.   
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