Sellers continue to rule the roost throughout the D.C. region, as prices (and inflation) continued to climb in February, while active inventory remained quite low.
How low is inventory? Just take a look at last month. Washington, D.C. active listings were down 11 percent compared to February 2021. And most of the region reflected the same when comparing the two months. Arlington County inventory was down 42 percent, Alexandria City down 42 percent, Fairfax County down 45 percent, Prince William County down nearly 8 percent, and Montgomery County was down 37 percent. Only Prince Georges County showed an increase in inventory—up about 1 percent.
The numbers of new listings that entered the market as “active” in February were a bit less severe compared to February 2021: Washington, D.C. (down 5 percent), Arlington County (down 11 percent), Alexandria City (down 10 percent), Fairfax County (up almost 2 percent), Prince William County (down about 3 percent), Montgomery County (up more than 2 percent), and Prince Georges County (up almost 8 percent). As we move into the spring, could this indicate a rise in new active listings? It’s unknown at this point, but we just need to keep watching.
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This dearth of inventory definitely has contributed to a rather longstanding seller’s market throughout the region, and a pretty steady rise in home prices. In February, D.C. average home sale prices were up 4.8 percent over February of 2021. The same was true for the rest of the region as well: Arlington County (up 10.6 percent), Alexandria City (up 5.7 percent), Fairfax County (up 8.5 percent), Prince William County (up 14.6 percent), Montgomery County (up 5.8 percent), and Prince Georges County led the way with an average sale price up 20.1 percent last month compared to February 2021.
But external stress on the economy, and the impact it might have on buyers remains a question mark. Inflation continued its climb and topped out at 7.9 percent in February—a mark not hit since September 1975. And soaring recent gas price increases also can have an impact, as those prices can translate to price increases up and down the supply chain and ultimately to consumers on a variety of goods and services.
Still, the glimpse of active listing increases in a few corners of the D.C. area could indicate a more agreeable climate for buyers, many of whom have endured multiple competitive offers on listed homes. We’re heading into the busiest time of the year for buyers and sellers alike, so stay tuned to DCRegionRealEstateNews.com for the latest in the market. And don’t forget to tune into our up-to-date videos that explore everything from the market to fun home projects and events.
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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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