I recently took an in-depth look at what’s been going on in Northern Virginia real estate so far this year. Here’s what I found:
The most notable trend is the leveling off of home sale prices so far this year. When we compare home sale prices this year to the same period of last year, there is no statistically significant difference in the average sale price (see the table below).
This might seem like a bad sign, but it really isn’t. In fact, home sales this year have been quite strong. However, the market has reached a point where homes are no longer undervalued.
In a market where homes are not undervalued, prices will remain the same, or slowly increase at a far more modest rate, and that is what we are seeing so far this year.
Home Sales in Northern Virginia so far this year (vs same period of 2015)
| Year | Homes Sold | Single Family Homes Sold | Avg Sale Price |
|---|---|---|---|
| 2016 | 5,630 | 2,444 | $542,474 |
| 2015 | 5,429 | 2,371 | $544,027 |
In Northern Virginia as a whole, the total amount of inventory has been shrinking all year. As of this writing, there is 2.60 months of active inventory on the market.
This number indicates a strong seller’s market is still taking place. It’s still a great time to sell, you just need to be a bit more careful with your selling strategy to ensure you get top value in this kind of market.
I also took look at Arlington County:
Home Sales in Arlington so far this year (vs same period of 2015)
| Year | Homes Sold | Single Family Homes Sold | Avg Sale Price |
|---|---|---|---|
| 2016 | 877 | 330 | $619,788 |
| 2015 | 923 | 325 | $642,168 |
What is true in Northern Virginia as a whole has been true in Arlington this year. Once again, home sale prices have leveled off, but homes are still selling quickly and the current market inventory is low (2.80 months of active inventory as of this writing).
One more note about Arlington: Single family homes are still selling for 97.5% of the original list price on average. Although sales prices are down as a whole, this statistic is in keeping with the average for last year. What that suggests is that the lower average sale price is due to fewer homes in the top end of the market being listed and sold, and NOT a decline or stagnation in home values.
Of course, all of this is a bird’s eye view of the situation. If you’d like to discuss the current market, or chat about anything related to real estate and home building, I’d love to speak with you! Feel free to call or write me anytime.
If you’d like to get an idea of what your home is worth in the current market, I’d be happy to do a complimentary market analysis on your home for you. Just click the button below:
Or Give me a Call @ 703-928-7109
If you’d like to discuss the current market, or chat about anything related to real estate and home building, feel free to call or write me below anytime.
Lou Sagatov
703-928-7109
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