Our region’s real estate market continues to roar as evidenced by how commonplace it is for homes to garner multiple bids—and some homes get far more than a few bids. In one case we recently experienced, a home received more than 30 bids, and nearly a dozen buyers conducted home inspections even before placing offers. The final price was more than 30 percent higher than the asking price! Not all bidding wars are that extreme, but we are seeing a similar pattern of multiple bids and quick sales among competitively priced homes in our region.
It’s a pattern that continues throughout the region: A property becomes active maybe Wednesday or Thursday, an open house might happen over the weekend, and on Monday or Tuesday the seller sets a deadline for offer submissions. Still, more properties are coming on the market as we head toward summer, and interest rates remain low, so buyers and sellers both have incentives as we move toward the middle of the year.
Throughout the region in March, sales trends remained similar to recent months. Despite slightly increasing inventory in D.C., Arlington, and Alexandria City, the outer reaches of the area continue seeing higher prices, shorter listing periods, and competition for a diminishing inventory.
Compared to March of 2020, average home sale prices last month in Fairfax County were up almost 10 percent. In Prince William County, average sale prices were up 12.5 percent, while in Montgomery and Prince Georges counties they were up 12.4 percent and 11.2 percent, respectively.
The speed at which homes in these areas are selling is pretty remarkable as well. In Prince William, average days on market were just six last month, compared to 22 days in March 2020. Over the same period, Montgomery County days on market dropped from 34 to 21. In Prince Georges, days on market dropped from 38 to 17, and in Fairfax, days on market dropped from 19 to 18.
The aforementioned numbers don’t mean that all has gone quiet in D.C., and near-in suburbs, though. Washington, D.C. prices were up 6.4 percent last month compared to March 2020, while inventory of active listings was 11.5 percent higher over the same period. Compared to March 2020, inventory in Arlington County (a smaller sample, with numbers that can swing a bit more drastically) was up 101.9 percent last month, with prices up 1.8 percent, and days on market increased from 18 to 27 over the same period. In Alexandria City in March, inventory was up slightly over March 2020 at 3.6 percent, with average sale prices increasing less than 1 percent. But days on market jumped from an average of 15 in March 2020 to 22 days last month.
The trends continue to play out, particularly in places like Prince William and Prince Georges counties, as a reflection of the world we live in. The pandemic loosened many commuters’ ties to their offices in places such as Washington, D.C, so their commute is either limited, or they’ve transitioned to full-time telework. While prices are climbing all around, the average sales price in Prince Georges was $370,856 last month and in Prince William it was $486,639, making them two of the most affordable parts of the region. Compare this to average sale prices last month in Washington, D.C. ($778,213), Arlington County ($769,131), Fairfax County ($693,613), Alexandria City ($648,047), and Montgomery County ($632,954).
With the ability to spread out, numbers reveal a continued migration toward the outer suburbs. Things can change quickly, of course, as we realized in the past year, so there’s no telling where this might lead. But it sure puts sellers in the driver’s seat for the time being, and makes it a bit more challenging for buyers. They key is to stay focused and be prepared no matter what side of a transaction you’re on.
Sellers still must remain diligent, prepare for sale carefully, and price their properties correctly. Buyers, too, can still win in this scenario, but it’s a matter of making smart choices, being more diligent than other buyers in the market, and making the right moves at the right time. If you’re selling or buying, check out some of our latest seller and buyer guidance, here, here, and here, so your positioned best to win in this ever-changing and challenging market.
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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