And just like that, we’re one-third of the way through 2022. Year-to-date sales numbers remain strong throughout the D.C. region and continue to favor sellers. For buyers, cash remains king, as low inventory and stiff competition make for challenging face-offs with many homes receiving multiple offers and prices often climbing above asking price.
From January through April, average home sale prices in Washington, D.C., were up 8.8 percent compared to the first four months of 2021, according to statistics from BrightMLS, our local multiple listing service. Median sale prices were up 3.1 percent. One change we’re seeing in D.C. is an increase in days on market—from an average of 29 from January to April last year to 32 days in the first third of this year. Still, 46 percent of homes sold in this period were under contract in 10 days or less.
In certain parts of the area, cash purchases are particularly strong. In Washington, D.C., cash buyers bought nearly 19 percent of homes in the first four months this year. If you narrow it down to certain neighborhoods, this reality is quite stark. Of the 93 home sales in Georgetown through April this year, 34 were cash purchases—nearly 37 percent of Georgetown closings.
Other D.C. neighborhoods have seen a bit of easing in the market. In popular Petworth, for example, average prices were up just about 3 percent compared to the first four months of 2021, and average days on market for a listing have climbed from 17 over that period last year to 30 days this year. Cash buys in Petworth from January through April made up about 11 percent of purchases.
Moving into Arlington County, average sale prices were up through April this year about 6.4 percent, and about 56 percent of homes sold in 10 days or less. Cash purchases were just under 20 percent for the same period. Inventory is still a challenge, however, with the number of new listings hitting the market in April down 22 percent from April 2021.
Alexandria City showed a 4 percent increase in average sale price over the same period, with days on market dropping to 20 from 24 in the first three months of 2021. Cash sales for the period made up about 15.5 percent of closings. Not as dramatic as Arlington, the number of new listings in Alexandria City last month was down 9.4 percent compared to April 2021.
Fairfax County is still one of the strongest seller markets in the entire region. Average sale prices were up 10.6 percent over January through April last year, and the median sale price jumped 9.6 percent over the same time. While cash buyers weren’t as big of a challenge for competing purchasers, they still comprised 13 percent of homebuyers in the first four months of 2022. Inventory remained tight last month as well, with the number of new listings down 16.4 percent over April 2021.
The buyer pressure in Prince William County, Va., has eased ever so slightly, with the average days on market at 11 from January through April, compared to just eight days for the same period in 2021. But sellers are still cashing in. Average sale prices were up 13.1 percent over the first four months last year, and the median sale price has climbed nearly 15 percent as well. Again, the inventory squeeze continues to favor sellers. In April, the number of new listings in Prince William was 18.8 percent lower than in April 2021.
Montgomery County, Md., increases weren’t as high, but the trajectory still favored sellers from January through April. Average sale prices were up 4.6 percent, and median sale prices were up 5.9 percent. Average days on market was similar to the same time last year at 19 days. Like Washington, D.C., however, cash buyers made up 19 percent of purchases in the county. New listing inventory was also down in April, 13.8 percent lower than April 2021.
For buyers, Prince Georges County, Md., is showing a lot of promise right now. Although average sale prices were up 13.2 percent and median sale prices were up 10.6 percent from January through April this year compared to the same time in 2021, homes are simply more affordable in PG County. The average sale price was $413,715 and median sale price $396,000 from January through April. Days on market increased from 16 to 20, and April had virtually the same number of new listings reach the market as April 2021.
Still, economic uncertainty continues, with inflation and interest rates higher. As of May 21, the 30-year fixed mortgage rate average was 5.4 percent, according to Bankrate.com. The inflation rate dropped slightly from a high of 8.5 percent in March to 8.3 in April, but it’s having an impact on buyers. According to the Mortgage Bankers Association, new home mortgage applications were down 10.6 percent in April compared to April 2021, and they were down 14 percent compared to March of this year.
The effect could be an easing on the competition in the area and give buyers a little more flexibility—and frankly some more time to make those all-important decisions about making an offer on a home. Aside from a few exceptions, lack of new listing inventory continues and appears to favor sellers for the time being.
So based on recent numbers, sellers continue to come out on top, and cash buyers definitely have the upper hand when competing in this low-inventory market. We’ll keep tabs on this as we move into the typically active summer season. Until then, please continue to follow us at DCRegionRealEstate.com and DCRegionRealEstateNews.com.
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 offer comprehensive real estate services, including 4½% full-service listings, throughout the entire Washington, D.C. real estate market. Angela is licensed in Virginia, Washington, D.C., and Maryland. Christopher is licensed in Virginia and Washington, D.C. In addition, Christopher holds a broker license in North Carolina and is affiliated with McGary & Associates.
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