The April data shows an upward trend in median sales prices, and further examination shows the rise can be attributed, in part, to shifts in the makeup of the housing market. This is due to the economic shutdown caused by the pandemic, which disproportionally affected people in the lower income brackets, forcing them to delay or cancel potential real estate transactions. Consequently, this month had fewer than normal sales of homes priced below $300,000, causing the median price to rise. In April 2019, properties sub-$300,000 made up 15.1% of the market in the Northern Virginia region, but this April, only 10.3% of homes sold were in that price range.
The number of units sold decreased across the region, with Arlington County exhibiting the biggest fall of 31%, followed by Fairfax County with a 23% decline. Inventory also took a dip, with Prince William County having the largest decrease of 40%, while Alexandria City had a 4% increase. Days on market remained low, with both Arlington County and Alexandria City averaging 12 days on the market, indicating strong demand.
“If you look at the Northern Virginia region, April results were much better than expected,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. There is still plenty of demand on the market and the number of buyers and sellers on the market seem to be balancing out.
A trend that was noticed was the decline in popularity of townhomes or condos in favor of single-family homes. Foster speculates this is due to people wanting to get out of socially dense areas and have more space.
Foster talked about mortgage forbearance, mentioning that he doesn’t believe we will have the same amount of foreclosures or short sales that occurred during the 2008 recession. “We’re not in the same place from an equity or loan perspective, people are still looking and buying up homes right now.”
Though many businesses have had to change course over the past couple of months due to the pandemic, Long & Foster’s vision remains the same. While the execution of that vision has changed, from a safety and virtual aspect, the company as a whole remains the same. Long & Foster still embodies the values that have been set forth – trust, family, excellence – and is still the destination brokerage for the most professional agents in the Mid-Atlantic.
Disclaimer: Information included in this report is based on data supplied by Bright MLS and its member associations of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and do not reflect all activity in the market. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of Bright or Long & Foster.