When tracking the real estate market, people often ask us: Is it a buyer’s market or a seller’s market? Right now, trends suggest that there’s good news for both. Prices are up for sellers throughout the D.C. region, while inventory for buyers has also opened up in some markets. Along with drastically low interest rates, buyers are looking still more positive news.
One emerging trend we’ve seen in recent months is that homebuyers are opting for the “farther out” suburbs, while D.C., Arlington County, and Alexandria City are showing increases in available inventory. The idea of commuters opting for greener pastures, possibly more home office space, and a departure from the hustle and bustle of city life is taking shape.
A main indicator of this is simply the number of active listings in a given area. Compared to September 2019, inventory was higher in September 2020 in D.C., Arlington County, and Alexandria City. D.C. inventory was up 6.4 percent. Alexandria City inventory was up 44.5 percent, and Arlington County inventory was up a whopping 91.2 percent.
Contrast this with active listings elsewhere for September. In Prince William County, active inventory was down nearly 60 percent (954 active listings in September 2019, and just 383 last month). Prince Georges County was down 57.1 percent over the same period, and Montgomery County inventory was down nearly 45 percent. Fairfax county was also down from September 2019, but just 21.9 percent (2,085 active listings last year vs. 1,639 this year).
Still, several dynamics are pushing on the market, which make determining market forces a lot more difficult. One might think that higher inventory (more availability) might keep prices in check compared to last year, but that’s not the case either. Historically low interest rates are showing up in the win column for buyers, so there are still likely more buyers than inventory—even in the areas where inventory has loosened up from last year. And that competition has bolstered sale prices just about everywhere in the area—even amid COVID-19 fears, the lockdown, and the rest of the issues riding the economic roller coaster this year.
Average sold prices throughout the region in September 2020 compared to September 2019 were up across the board: Washington, D.C. (up 7.2 percent), Alexandria City (9.9 percent), Arlington County (17.1 percent), Fairfax County (15.1 percent), Montgomery County (15.7 percent), Prince Georges County (14.3 percent), and Prince William County (10.9 percent).
Finally, another indicator that continues to point toward tight competition and a rapidly moving market, is the average days on market are trending even lower than this time last year. In Prince William County, homes were on the market an average of just 12 days in September, compared to September 2019—a 63.6 percent drop. In Fairfax County, that average was 19 days (down 40.6 percent). Prince Georges County averaged 21 days (down 43.2 percent), and Washington, D.C., 22 days (down 40.5 percent). Montgomery County average was 25 days on market (down 40.5 percent), Alexandria City just 14 days (down 39.1 percent), and Arlington County average days on market was 21 (down 28 percent from September 2019).
Remember, however, these are just averages. A closer look at the data shows that buyers better make it snappy when deciding on a home offer if they find something they like. In Prince William County 86 percent of homes sold were o the market just 20 days or less. Similar numbers were seen throughout the region in September: Alexandria City (81 percent sold in 20 days or less), Fairfax County (78 percent), Prince Georges County (76 percent), Arlington County (71 percent), Montgomery County (71 percent), and Washington, D.C. (66 percent).
This doesn’t mean it’s impossible to buy or sell a home, but it does mean you should have a smart, experienced, and dedicated agent on your side when it comes to making an offer or listing your home for sale. We’re in a period of positives for buyers and sellers alike, so long as you have a keen eye on the market and a pro in your corner to take advantage of the opportunities out there today.
Christopher Prawdzik and his wife Angela Logomasini are licensed Realtors® with Samson Properties in Alexandria and are members of the Northern Virginia Association of Realtors® Top Producer’s Club. Operating as D.C. Region Real Estate, they serve the Virginia, Washington, D.C., and Maryland real estate market and offer comprehensive real estate services, including 4½% full-service listings.
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