If you’re thinking about selling and want to enter an atmosphere of high demand, now is as good a time as any throughout the region. Throughout the entire Mid-Atlantic region, there were 22,169 fewer properties on the market last month than in May 2019. This 33 percent drop in properties on the market is reflected, for the most part throughout the D.C. region. Prices are also slightly up over the same period last year.
The number of active listings in Fairfax County in May was down 36 percent from May 2019. For the same period, Prince William County listings were down 49 percent, Montgomery County down 38 percent, and Prince Georges County down about 33 percent. Inventory in Arlington County, however, was down just 5.6 percent, Washington, D.C. showed a 9 percent decline, and Alexandria City was down about 16 percent over May 2019.
The low inventory and very low interest rates at the moment are still fueling a strong sellers’ market, resulting in competitive contracts and a very short window for buyers to submit contracts.
In Arlington County, though the average days on market (DOM) was 19 in May compared to 17 in May 2019, more than 80 percent of homes sold were on the market 20 days or less. Alexandria City’s DOM for May was also up a bit—15 days compared to 12 in May 2019. Still, 73 percent of sales happened in 20 days or less.
In other parts of the region, the bulk of sales are happening in just under three weeks as well: Fairfax County (77 percent), Prince William County (77 percent), Montgomery County (69 percent), Prince Georges County (64 percent), and Washington, D.C. (61 percent).
Fueled by demand, average sale prices were up pretty much across the board in May. Washington, D.C. enjoyed a 5.9 percent average price change over May 2019. Prince Georges County was up 5.3 percent over the same period, and most of the rest of the region saw an average price increase as well: Prince William County (3.8 percent), Fairfax County (3.1 percent), Alexandria City (2.6 percent), and Arlington County (2.1 percent.) The only part of the region that showed a very slight drop in average price over May of 2019 was Montgomery County with an average sale price 0.2 percent less—virtually no change.
Despite the economic impact of job losses and company closures during the COVID-19 shutdown, the sales numbers throughout the region remain strong. Though we’re in uncharted waters, movement at this point appears gradual. With the continuous low inventory, buyers are keeping the market rather robust for sellers.
Though the spring and early summer is typically the period of the largest inventory of the year, it’ll be interesting to see if those who might have held off listing property during the shutdown decide to list as we move into the summer. Multiple impacts are driving such decisions. For example, the military instituted a travel ban in March until May, which may have put moving plans on hold for several families in the area.
For eager buyers, the hope would be for inventory to loosen up in mid to late summer—typically somewhat of a slower period in years past. But this year is definitely nothing typical, so we’ll just have to see.
If you’re a buyer, all is not lost by any means. Though inventory is low, homes are still being bought and sold. Throughout the Mid-Atlantic region, there may have been fewer homes on the market, but 17,623 units did close in May at all levels. It’s just crucial that you’re fully prepared to jump in the game. That’s where we can definitely help. It’s about knowing the market, being fully prepared, and being able to navigate the process to submit the best offer you can.
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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