The COVID-19 Effect on Arlington, VA Real Estate Housing Market in April 2020
April 2020 is the first full month of social distancing and stay-at-home orders due to COVID-19. Will April’s housing data help us gain a clearer picture of the impact of COVID-19 on the Arlington, VA housing market? Let’s find out.
We consistently hear we have a shortage of housing inventory relative to the demand for homes, not just in Arlington County, but throughout Northern VA. With COVID-19, we would expect the inventory to be even tighter, right? Interestingly, in April 2020 there were 328 active listings on the market. Compare this number to the 340 active listings in April 2019 and the 342 active listings in March 2020. We have only seen a 3.65% reduction year over year and a 4% reduction in inventory month over month. That’s good news!
In terms of price, the escalations are continuing. The median sales price in Arlington County in April 2020 was $678,000; a 5% increase over April 2019 when the mediam home price was $643,750. Compared to March 2020 when the median price was $637,450, April 2020 prices are 6% higher. The price increases tell us that supply and demand are still out of balance; there are more buyers than there is inventory on the market.
While the number of showings are down, we are still seeing multiple offers on homes that are market priced and move-in ready. Those who are looking to buy a home in the current market are serious and are moving quickly. Homes are going under contract in about a week. The market is moving quickly in other Northern Va communities as well.
Last month we saw a decrease in homes that went to closing. In Arlington County, 198 homes closed in April 2020 compared to 284 in April 2019. This translates to a 30% decrease year over year. We also saw a 13% decrease compared with March 2020 when 228 homes sold.
As a real estate industry, we have adapted to our new environment to keep buyers, sellers and investors healthy by following the CDC compliance standards. We have implemented clear protocols that real estate agents must follow to keep homes clean and safe for everyone entering them and for those who are living there. For example, our team always wear masks, gloves and booties when showing homes. Hand sanitizer is used before and after entering a home. At every home we list, we include a COVID-19 kit of gloves, booties, masks and sanitation wipes for buyers entering the house. Once a buyer leaves, we wipe down all surfaces. We also leave doors, cabinets and closets open to minimize contact. Our number one goal is to help people move into or out of their magnificent manor while keeping them safe and healthy.
Real estate is a local business and highly segmented by price which means that your neighborhood may be experiencing trends different from regional trends. Contact me and I will provide you with your specific neighborhood real estate trends. If you are thinking about buying, selling or investing in real estate, we will provide you with the economic trends and price/value analysis you need to make a smart decision right for you. And, we will make sure you are safe during the entire process.
I am available by phone or text at 703-798-1803 or [email protected].
The following analysis is based on Bright MLS housing data.
