The real estate market in the Washington DC metro region continues to experience extremely high volatility. By all accounts, it remains a strong seller’s market across the area. Northern Virginia, for example, has seen a 12% increase in the average sales price of a single family home since Q1 2021 and a 24% increase since Q1 2020. The chart below illustrates the market dynamic in Q1 in Northern Virginia.
As we move through a year where the Fed has committed to raising the interest rate several times, we will get a clearer understanding on what that dynamic could mean for the local market. It is possible we will begin seeing the market normalize after unprecedented growth for more than a decade.
Demand still outpaces supply, but as market dynamics continue to evolve, here are a couple of tips to stay afloat with this volatility. Buyers should trust their instincts and take their time finding the home that works for them while sellers should use this time to make renovations that contribute long term value to a home, such as refurbishing the kitchen, adding solar panels, or replacing old HVAC systems. Homes are selling faster and at prices higher than what they were listed for; this dynamic is exacerbated with homes that are in showcase-ready condition.
In Potomac Yard and Amazon HQ2, the average sold price has steadily increased by 10% since 2021 with the average days on market decreasing by 80% to 6 days.
In the town of Vienna, we have seen a 7% increase in the average listing price in Q1 2022, continuing the trend we saw for the strong 2021 market. The average days on market in the first quarter decreased by 23% to 30 days.
In Vienna in 2021, the average home sold for the same price it was listed at whereas my personal transactions sold at 3% higher than listing price on average. Please reach out if you need to sell your home right now, and want to engage with an agent who has the expertise, local knowledge, and global reach necessary to get you the best result.