It is hard to believe we are entering the 4th Quarter of 2019 already.
It will be interesting to see what the vision of the real estate market will be in 2020. Right now, the real estate market is very dynamic and very hyperlocal. We see inventory levels remaining low relative to previous years. We currently have a total of 4,122 houses for sale in Northern Virginia – 33% fewer homes for sale through September this year versus last year. Homes priced below $350,000 represent only 719 houses with only 45 of these are located in Arlington. The Amazon Effect in full force in Arlington. Homes priced between $350,000 and $700,000 make up 1,822 homes of the total inventory numbers, only 46 of these are located in Arlington. Lastly, houses priced above $700,000 make up 1,582 of the houses for sale in the marketplace and there are only 118 in this price range located in Arlington.
As you can see, the market is different in each location, I just picked Arlington as an example. That does not tell the whole story – prices are up year over year in all of Northern Virginia by 3.6% while in Arlington, they are up 12.4%. Additionally, the median days on market in all of Northern Virginia is 15 days on the market and in Arlington…you guessed it, lower at only 8 days on the market. The market is definitely hot for sellers “if” you price it right and do the right upgrades. Buyers will pay for ready to go houses and will pass on the ones that need work or updating.
This being said, housing prices are up year over year throughout our area – just not substantially. The 3.8% is healthy and sustainable. The issue we are having is sellers are trying to attain 5% per month and therefore the houses are not selling. In today’s market, buyers are being very discerning on prices and are not making offers including low offers. Sellers who overprice their houses or price in “negotiating room” find themselves sitting.
If you are looking to buy or sell in today’s dynamic market, call me today to set up a no-obligation consultation to learn more.
Enjoy the cooler temperatures heading our way! Happy Halloween!