We’ve discussed the competitiveness of the local real estate market at length in recent months, and as we enter the typically busy days of spring and summer, there’s no sign of it letting up at all.
Anecdotally, it’s a reality we’ve witnessed first-hand. A recent Old Town seller listed a home with us for $1,039,900. We received the first offer within about eight hours of listing but still marketed through the weekend, holding an extremely busy open house and setting a Tuesday offer deadline. When all was said and done, our clients chose from multiple contracts an offer about $30,000 above asking price. In another case, a recent buyer in Washington, D.C. competed with about 10 other bidders on a home, where the winning offer escalated to about $100,000 above list price.
Still spurred by fantastic interest rates, buyers throughout the region are on the prowl, but continuously low inventory is leaving sellers sitting pretty. As has been the case in the past several months—though the demand is high throughout the area—places such as Prince William and Prince Georges counties are really on fire.
In February, Prince William County average home sale prices were up 8.4 percent over February 2020. Prince Georges County saw higher average prices as well, up 6.1 percent over the same time last year. But the really telling numbers point to inventory—or lack of it. Prince William inventory in February was down 62.1 percent from February 2020; Prince Georges was down 51.2 percent over the same period.
Related to that, average days on market for a home in Prince William dropped from 32 days in February 2020 to just nine days last month. In Prince Georges, days on market dropped from 40 all the way down to 17. Montgomery County days on market dropped as well, from 43 to 23 days over the same period, with an inventory drop of 36.6 percent.
Demand in Fairfax remained strong as well, just not as earth shattering as those previously mentioned. Inventory in Fairfax County was down about 27 percent last month compared to February 2020. Prices were up an average of 2.4 percent, and days on market declined modestly from 29 in February 2020 to 24 days last month.
Believe it or not, in D.C., Arlington, and Alexandria, the inventory crunch has subsided a bit, but competition is still extremely heavy. Washington, D.C. inventory was up 21 percent last month over February 2020. In Arlington and Alexandria, it was up 118 percent and 40 percent, respectively.
Coupled with the much higher inventory in Arlington last month, average sold prices dropped about 9 percent as well from February 2020. Washington, D.C. prices, however, were up 11 percent, while they jumped nearly 6.5 percent in Alexandria City.
Average days on market were up or stayed basically the same in these three areas as well. Washington, D.C., days-on-market average went from 36 to 35 days, while days on market in Arlington jumped from 22 to 31 and increased from 15 to 34 days in Alexandria City.
We’re excited about what impact the spring and summer months might bring to the market. Typically you have more homes on the market in these months, but you also have more buyers. Where that balance will end up remains to be seen.
As agents, we’re continuing to keep our arms wrapped around the market as well. If you’re a seller, the incentive is to make sure your home is properly priced and ready to sell. If you get it right, it could increase your chances as sales success—particularly in that crucial first week of the listing.
For buyers, interest rates remain low, which provides some incentive to get out there and find that perfect home. The key in this market is to make sure you’re offer on that home you love is the strongest possible. Check out this recent article about winning in such a competitive market. You’ll be glad you did when you’re ready to make that offer.
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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