The real estate market appeared to catch up to some of the warning signs we’ve seen in recent months, as prices in Fairfax County dipped in between July and August. The average sold price in the county in July was $771,198, and median price was $650,000. In August, those numbers slid a bit, with average and median sale prices dropping to $721,095 and $635,000 respectively. Overall, however, prices remain higher than a year ago, with average prices throughout the county up 3.7 percent and median prices up 5.3 percent over August of 2021.
This wasn’t an unexpected turn, as inflation and interest rates continue to climb, making buyers a bit weary about jumping into such a big purchase.
A quick note about inflation: According to the Consumer price index, inflation was 8.3 percent in August compared to 8.5 percent in July. But digging deeper, certain categories have really put a dent in consumers’ pocketbooks in recent months. In August, fuel oil prices were up 68.8 percent from a year ago. Gasoline prices were up 25.6 percent from a year ago, and food prices were up 13.5 percent from August 2021 as well.
Still, inventory remains low in the area, and for buyers willing to stick it out, there now may be more room for negotiation when it comes to those home purchases.
Numbers in South Alexandria, particularly zip codes 22306 and 22307 showed the market remained strong for sellers. Average sale prices and median prices in 22306 climbed nearly 5 percent compared to July.
The story was similar in 22307, with average sale prices up 9 percent and median sale prices up a whopping 34 percent—but keep in mind, in 22307 there were only 23 sales in August compared to 32 in July, which can make average and median prices swing widely.
Elsewhere in the region, Washington, D.C. average home prices have been slightly lower the past two months than they were a year ago. From July to August, average and median home prices stayed even.
Montgomery County average home prices were up 6.9 percent in August compared to a year ago and were up slightly from July as well.
Prince William County average home prices in August were up 8.3 percent compared to a year ago, but were down almost 2 percent compared to July this year. Prince Georges County as well saw prices up 3.5 percent compared to a year ago, but saw a 3.3 percent drop from July to August.
Keep in mind, inventory remains perpetually low throughout the region so sellers pricing their homes correctly can still do well, but we’re also in a period where the number of buyers has declined, putting buyers in a bit better position as we move toward the fall.
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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