June 18, 2020 | Josh Sullivan
Market activity for the DC Metro has been surprisingly optimistic amidst looming fears of COVID-19, continuing to push prices higher as buyer’s confidence holds strong. While demand remains high, some sellers and developers are holding off on listings, pushing active and new listings to a record low for May. This constrained supply has pushed prices up 4.2% YoY to reach $500,000 last month throughout the DC Metro Area.
The District was not too far off from the rest of the Metro Area, with prices continuing to rise while supply remains at historic lows. Median sales price reached a record-high $660,000 for May, outperforming initial expectations. Incidentally, due to limited supply, sales fell almost 40% YoY for DC – distributed equally among detached single-family homes, townhomes, and condominiums.
Arlington & Fairfax County, VA
Arlington and Fairfax County’s market activity followed the same trend with median sales prices reaching $622,500 and $575,000 respectively. Each of the counties saw a dip in closed sales of over 30% from this time last year, with condominium product seeing the most significant drop-off within those jurisdictions.
COVID-19 continues to be a bit of a rollercoaster as the market has begun its return to normalcy. We expect supply to begin rising as we enter the end of the summer and sellers begin to cope with the current state of affairs, becoming more comfortable putting their house on the market and initiating their next stage of move up/move down. In the meantime, we see new construction product, particularly middle-market homes, to stand to benefit the most from the current landscape. Although seller confidence has yet to recover, we’ve seen no dampening of buyer demand and expect this to continue until we being to shift to a more balanced market.