July 16, 2019 | SiteAdmin
June was a record setting month for the DC area, reaching an all-time high for median sales price of $490,000. For the first time in a while, these higher prices are beginning to affect sales. Closed home sales for the region dropped 8.3% YoY in conjunction with sales volume falling 5.5% YoY as well. Buyers have withstood rising prices in the past, but they are finally beginning to push back and wait for prices to moderate.
Unlike prior months, where the District’s performance is usually an outlier, June proved to perform similarly to that of the greater DC Metro. Another record was reached for DC proper with median sales price posting an all-time high of $620,000 for June. While prices pushed higher, closings decreased almost 4% YoY with 857 sales. The dip in sales was distributed fairly evenly throughout detached single-family homes, townhomes and condominiums – each of which failed to exceed last year’s figures.
Arlington County, VA
June was a similar story for Arlington. Though no records were set, median sales price still saw improvement over last year, with a 7.7% increase to reach $563,310 for the month. Though sales rose moderately, the drop-off in closed was considerable, posting 20% fewer home sales YoY. This was the most significant decrease in closings due to the considerable drop in supply within Arlington County. The supply of homes for sale plummeted by 55% compared to this same time last year. The splash from Amazon HQ2 caused a frenzy amongst investors, gobbling up everything in sight, especially in Arlington. The short supply left over combined with minimal new listings and rising prices cause such a precipitous drop in home sales for the county.
Fairfax County, VA
It was the same old story for Fairfax County during the month of June, mimicking the trends of the greater DC Metro. While the region’s sale price increased 4%, Fairfax County posted a median sales price of $565,000, or an increase of 3.7% YoY. In addition to the similar level of growth, Fairfax County also experienced a record setting month with sales reaching the highest prices in over 10 years. Closed sales had a similar story, dropping 6% YoY for the county compared to the 8.3% for the greater region.
The spring market got off to a slow start this year with low inventory and low sales towards the end of March and into April. We then saw a boom to the market in May, when a surge in supply alleviated the previously pent-up demand. It seems as though buyers began to push back again in June, due largely to the lack of supply in the market. It will be interesting to track this trend moving forward, to see if this residual demand flows into the Fall market, which ordinarily would be a less active market.