March 2020 has been unusual month for all of us as we navigate through the COVID-19 social distancing and stay-at-home orders. Many of you have asked how are these uncharted waters affecting our local real estate market.
Despite the uncertainty in the market, there is good news for both buyers and sellers. Overall, in Northern Virginia there was a +14.6% increase in the number of homes sold in March 2020 compared to March 2019. The median price ($578K) and average home price ($649K) were also up +7.5% and +8.9% respectively this March over March 2019.
Moreover, listings typically sold at full asking price with the average sales price to original list price ratio hitting 99.7%, slightly higher than the sales price ratio in March 2019. Much of the sales occurred in the first half of the month. But we must also attribute it to the quick-thinking real estate brokerages and lenders in the region who have transitioned to virtual home tours and social distancing/virtual transactions in record breaking time.
We can’t deny that the spring real estate market inventory is even tighter than previous years. Active listings were down -11.9% this March compared to March 2019, and new listings were down -6.8% compared to March of last year.
Analysts are waiting for April’s housing data to gain a clearer picture of the impact of COVID-19 on our housing market. Many factors will come in to play, including the decrease in consumer spending and travel, unemployment, and the stimulus bills. In the meantime, the industry remains committed to adapting to help keep everyone healthy while also meeting government compliance standards. Much of what we are developing now is making our processes more effective and efficient and may be adopted as best practices going forward. That’s a good thing for buyers, sellers and investors.
Real estate is a local business and highly segmented by price which may mean that your neighborhood is experiencing trends that differ from the regional trends. Contact me with any questions you have about your neighborhood’s economic real estate trends. 703-798-1803 or [email protected].
The following analysis is based on April 2020 NVAR housing data here and Bright MLS housing data here.
