March Brings Record High Pricing to Fast-Moving Northern Virginia Housing Market
Fairfax, Va. – Buyers acted quickly to make offers on homes in Northern Virginia in March. “I put a listing up at 8 a.m., and by 10 a.m. would have the first showing,” said Thai-Hung Nguyen, Northern Virginia Association of Realtors® (NVAR) secretary-treasurer and principal broker with Better Homes and Gardens Real Estate Premier in Falls Church. “What Realtors® are dealing with now are a lot of showings within the first 48 hours of listing,” said Nguyen.
Homes in the NVAR region, which covers Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton, sold with an average of just 14 days on the market in March, a decrease of 30% compared to March 2021 when homes took an average of 20 days to sell. Of the 2,035 homes sold in the region, 1,443 of them (29%) sold in 10 days or fewer.
“If any houses stay on the market for more than two weeks, that’s an obvious sign of being over-priced or in a condition that is not good enough for most buyers. Buyers still prefer move-in ready houses,” said Nguyen.
A lack of available homes for sale continues to fuel the Northern Virginia residential market. However, while there were 22% fewer listings in the NVAR region in March than one year ago, that year-over-year decline was not as steep as the declines posted during the prior three months. And there was a 37.8% month-over-month increase in supply compared to February.
According to Nguyen, there may be more houses coming to market. “One thing I noticed is there are more ‘Coming Soons’ in the MLS, which hopefully means more homes in the pipeline that will bring some relief to the inventory issue.
“The typical number of offers we’re seeing listings receive right now averages five to seven. For some listings, it may be as low as one or two, but there are a few that see as many as 25 offers,” said Nguyen.
According to the Bright MLS T3 Home Demand Index, demand for homes in Arlington and Fairfax counties and the city of Alexandria was in the High category in March, compared to a Moderate range for surrounding areas.
Under these market conditions, both buyers and sellers should seek professional counsel to position themselves for success.
“We advise buyers to consult with their Realtor® to craft a competitive offer that still protects their interests,” said Ryan McLaughlin, NVAR CEO. “We hear stories of buyers coming in with no contingencies, which could be risky, depending on their particular circumstances,” McLaughlin said. Nguyen emphasized that buyers need to understand what they’re waiving and make an informed decision.
Multiple offers for a limited supply of homes pushed prices to a record high in March. The average sold price of a home in the NVAR region in March was $779,908, 12% above the March 2021 average of $696,318. The average price of a single-family detached home was $1,137,371, 11.6% higher than last year. Homes continued to sell above list price in March, with an average sold price to original list price ratio of 103.4%, which was 2% higher than March of 2021.
“With the Fed raising interest rates, which translates to higher mortgage rates, some buyers will likely be priced out of the market,” said McLaughlin. “While this, combined with rising inflation, may soften the rapid price increases we’ve seen over the past year, it’s unlikely that homes will lose value in our market.”
As reported by Freddie Mac on April 7, mortgage rates have risen 1.5 percentage points over the last three months, the fastest three-month rise since May of 1994. This increase could impact affordability, keeping some buyers on the sidelines.
“Affordability continues to challenge a wide segment of our population,” said McLaughlin. “Last month I moderated a session as part of the Fairfax County Housing Symposium where the panelists took a close look at this phenomenon. I encourage all Northern Virginians to learn more so that we can work together to find sustainable solutions,” McLaughlin said.
February 2022 Regional Home Sales Compared to February 2021: Northern Virginia Data from Bright MLS as of March 4, 2022; total sales and listings may not include garage/parking spaces.
The Northern Virginia Association of Realtors® reports on February 2022 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.
A total of 1,355 homes sold in February 2022, a 9.5% decrease below February 2021 home sales of 1,497.
The number of active listings decreased last month compared with 2021. Listings were 43% below last year, with 896 active listings in February, compared with 1,579 homes available in February 2021. The average days on market for homes in February 2022 fell by 7% to 25 days – compared to 27 days on market for homes in February 2021.
New listings fell by 2% in February compared with last year, to 1,989. There were 2,029 new listings in February 2021
The average home sale price rose by 8% compared with last February, to $714,481. The February 2021 average sale price was $661,391.
The median sold price of homes this February, which was $607,375, rose by 6.6% compared to the median price of $570,000 in February 2021
WOODBRIDGE, VA. April 15, 2022—REALTOR® Association of Prince William (PWAR) has gathered Prince William County’s most recent market statistics, generated by Virginia REALTORS® Chief Economist, Lisa Sturtevant, and SmartCharts, an affiliate website of Showing Time. The market statistics are gathered through data provided by VAR and Bright MLS, which serves as the multiple listing service for Prince William County.
A total of 721 homes were sold in March 2022, an increase of 0.7 percent compared to March 2021 at 716. The number of pending sales saw a decrease of 12.8 percent year-over-year, from 942 to 821. New listings showed a slight decrease in percentage year-over-year, with 953 new listings, as opposed to 1024 in March 2021. PWAR had more active listings available last month with 276 active listings in March 2022, compared to 250 in 2021; a difference of 9.4 percent. The median sold price of homes saw an increase of 17.4 percent to $512,000 as compared to $436,000 last year. The average days on the market increased to 9 in March 2022, as opposed to 7 in 2021.
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