market update
quarter of 2011, 56 percent of homes listed for under $350,000 were condos.) In Fairfax County (including the cities of Fairfax and Falls Church), about half of the listings under $350,000 were condominiums. In Arlington and Alexandria, condos comprised more than 90 percent of the listings under $350,000.
When buyers are finding homes in the under $350,000 range, they are snatching them up relatively quickly. During the past six months, homes took an average of 68.2 days to sell in the NVAR region. However, the average days on the market was much lower for homes listed under $350,000. On average, these lower-priced homes sold in 58.4 days, while the most expensive homes took the longest time to sell, averaging 91.8 days on market.
to get into the game. These include potential move-up buyers who have been watching the market, waiting for the right time to sell their first home and buy their second. There may also be increased activity in neighborhoods that have not yet experienced sustained price appreciation. As we head into spring, inventories should rise in the NVAR region. In neighborhoods where it has been more of a seller’s market, there will be greater balance. Both first-time and move-up buyers will encounter more choices. The increase in supply may temporarily moderate price appreciation. In other words, as buyers encounter more options, they may find they have greater opportunities for negotiating on price. Ultimately, though, the increase in inventories signals increasing confidence among buyers and sellers. While uncertainty in the region remains—particularly with regard to the impact of federal budget cuts—the NVAR market will strengthen further as the weather continues to warm and we move into summer.
Right now, it is a sellers’ market for homes in the lower price ranges. According to data from MRIS, the ratio of sale-to-list price for homes listed under $350,000 was 0.98, indicating that these sellers are getting just about asking price. The limited supply of lower-priced single-family homes (i.e. smaller homes, townhouses) coupled with increased buyer interest should encourage more would-be sellers
NVAR Realtor® update
May :: June 2012
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