June 2020
In real estate we are always looking for trends to see what the future may hold and to make sure we are responsive to our clients’ needs. We analyze month-over-month and month compared to a year ago to look for these trends. Let’s start with Arlington County, VA.
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Arlington,VA Real Estate Housing Market Update
The “Spring Real Estate Market” may finally be hitting Arlington County. It seems the COVID-19 pandemic delayed the trends we are used to seeing in March and April. Buyer demands are increasing, and the market is accommodating them. There were 30% more residential units listed in June 2020 (362) than in May 2020 (254) and 18% more listings compared to June 2019. (298). Another increase occurred with residential units sold; 17% more units sold in June 2020 (227) compared to May 2020 (188). Yet relative to June 2019, we saw a decrease of 22% less residential units (278) sold.
Home prices seem to be leveling out from the escalation we saw in April and May 2020. However, sellers are still benefiting from those who are looking to buy a home in the current market. These buyers are serious and are moving quickly, sometimes having to compete in multiple offer environments. The median list price is consistent with what we saw in May 2020 with less than a 1% decrease from $739,000 compared to $743,950. When looking at June 2019, we see a significant increase of 13.3% when the median sales price was $652,500. The median sales price is tracking with the median list price where Arlington experienced an increase of 5.2% in June 2020 ($660,000) compared to $627,500 in May 2020. Even more noteworthy is the 17% rise in the June median sales price over June 2019 ($563,500).
At the beginning of the COVID-19 pandemic, some expected the real estate market to pause and slow down while others predicted prices would drop from the reduced demand. In fact, the opposite has occurred. More homes are selling and prices are increasing. While, we don’t see as many buyers browsing, those buyers who are looking at homes are serious about wanting to buy sooner rather than later.
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Washington DC Real Estate Housing Market Update
Are homeowners “moving out of cities and into the suburbs” in response to the COVID-19 pandemic? Historically, inventory in our capital city has been low with buyer demand outpacing the the housing supply. This trend reversed itself in June when the number of units (condos, detached homes and townhouses) listed increasing by 13% over May 2020. Compared to June 2019, new listings were up just slightly at 5%. As we turn from new listings to sales, June saw an increase of 26% in closings (790) over May 2020 (585) and a decrease of 16% from June 2019 (915).
As we analyze prices, the median list price for homes was lower in June ($665,000) with a 3.6% decline over May 2020 ($689,000). However, June 2020 list prices were higher by 5.7% than last June 2019 ($629,207). The median sales price in DC were also lower than last month by 5.7%. Compared to June 2019, the median sales price held steady at $610,000.
Are home owners fleeing DC for the suburbs. Yes – some are – but others are staying put. We have noticed, anecdotally; buyers are looking for more space for home offices, recreation and/or homeschooling. Builders are getting more requests for homes with pools and larger recreation areas. We are spending more time in our homes than ever before.
Check with us next month. We’ll continue to analyze and post the housing trends and the impact COVID-19 is having on our market in DC, VA and MD.
If you are thinking about buying, selling or investing in real estate, we will provide you with the current economic trends and price/value analysis you need to make a smart decision that’s right for you. And, we will make sure you are safe during the entire process. I am available by phone or text to start the discussion. 703-798-1803 | [email protected]
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We are committed to keeping our clients safe, happy and healthy during the COVID-19 pandemic. The real estate industry has successfully adapted to the new COVID-19 environment to keep buyers, sellers and investors healthy. We are complying with CDC standards to implement clear protocols real estate agents must follow. These guidelines keep homes clean and safe for everyone entering them and for those living in them.
The following analysis is based on Bright MLS housing data.
