The combination of limited inventory, high demand, and low interest rates again revealed that benefits exist for both home sellers and buyers as we move toward the winter. But one thing is certain, if you’re seriously looking to purchase, you’d better be ready to pounce.
According to SmartCharts MarketStats by ShowingTime, for sellers in every jurisdiction we follow, average home sale prices in October were up 10 percent or more over October 2019. Take a look at some of these numbers: Washington, D.C. (up 17.6 percent), Arlington (14.5 percent), Alexandria City (11.5 percent), Fairfax County (11 percent), Prince William County (11.5 percent), Montgomery County (12.2 percent), and Prince Georges County (12.1 percent).
Days on market, for the most part, emphasized the continued strong demand throughout the area. However, in Alexandria City, the average days on market was 20 in October—twice as long as it was a year ago. For the rest of the region homes were still selling much more quickly, on average, than last year.
In Washington, D.C. average days on market dropped to 23, an 8 percent drop from October 2019. Arlington County registered one day less at 17 than the same time last year. Fairfax County days on market were nearly 41 percent lower at just 16 days. Prince William County’s average was just 10 days—a 66 percent drop from a 29-day average in October 2019. Montgomery County and Prince Georges County were both down more than 40 percent from last year at an average of 20 and 16 days on market, respectively.
Even with these averages, the majority of October home sales occurred in 10 days or less: Washington, D.C. (57 percent), Arlington County (56 percent), Alexandria City (60 percent), Fairfax County (66 percent), Prince William County (75 percent), Montgomery County (61 percent), and Prince Georges County (64 percent).
As we’ve seen a bit over the past few months, sales speed has trended a bit faster the farther a person ventures from D.C. The reasons for this can be many, but many buyers might be looking at some more affordable properties.
Average sale prices in D.C., Arlington County, Alexandria City, and Fairfax County were all above $650,000 in October—with average prices hitting $810,523 in D.C. and $757,378 in Arlington County.
To the contrary, more affordable numbers were showing up elsewhere, with average prices in Prince William County coming in at $454,254, while Montgomery County sat at $615,949 and Prince Georges County showed a $364,610 average.
The other draw to the hinterlands could most definitely be related to the drastic shift over the past year as a result of COVID-19 and the shutdown. Many more people are working from home, so the need to be close to a city such as Washington, D.C. may have waned a bit. Better affordability, as well as the prospect of more square footage for a more reasonable price could contribute to this trend toward the suburbs and farther out.
Without a complete long-term analysis yet available, the anecdotal evidence has built over the past several months. Just take a look at these reports in The Guardian, The Wall Street Journal, and The Mercury News. And it’s not just individuals moving out of town. There’s also a growing inventory of office space in these cities as well. A Nov. 2 report in Washington Business Journal shined a spotlight on office vacancies in Washington, D.C.
So, for buyers and sellers alike, advantages still can be found throughout the region. Obviously, time remains an essential factor, while low inventory and low interest rates appear to benefit both sides of the equation as we move toward the holiday season. So buckle up. If this year has shown anything, it’s that uncertainty remains the cornerstone of today’s exciting D.C. real estate 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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Kathleen Sole says
Great overview, Chris Prawdzik.