The pandemic has led to several trends, including low inventory, high demand and historically low interest rates, that have coalesced to create the present environment. Each of the Washington metro area’s jurisdictions experienced varying degrees of declining time on market and price appreciation since the beginning of 2019. According to data from Bright MLS, single family homes, townhouses and condominiums sold in Northern Virginia, Washington, DC and Montgomery County, MD have all lasted on market for shorter periods of time and have seen marked increases in sales price.
Since the beginning of 2019, the last full year before the pandemic began, homes that were sold in Montgomery County, MD have seen their Days on Market decrease by 47%, from 34 days on market in 2019 to just 18 days on market in 2021. In that same period, median sale prices in Montgomery County have increased by 18.3%, from $450,000 to $532,287. Similarly, Northern Virginia (which for the purposes of this study includes the City of Alexandria, Arlington County, Fairfax City, Fairfax County and the City of Falls Church) has seen comparable changes. Since 2019, the average days on market of homes sold has decreased by 25.0%, from 24 days to 18 days, while median sale prices have increased by 15.2%, from $542,500 to $625,000. Washington, DC has seen smaller, but still significant changes as well since 2019. Average days on market in the District of Columbia have decreased by 10.0%, from 30 to 27, while median sales prices have increased by 11.8%, from $585,000 to $654,250. While these market-wide trends show some signs of softening, the residential real estate market remains ahead of historical averages.