The kids have just returned to school, but we are ready to give a report card- to the 2019 Summer Housing Market! How does the 2019 Summer Housing Market compare to last year? And where do we think it is going?
Housing Market
June 2018 to June 2019
Grade: P for Peak Price
June is usually the hottest month for real estate sales, leading to stiff competition and high prices. In June 2019 the Median Sold Price for Arlington was $308,000, 6.2% higher than the median price in June 2018. The biggest culprit is low inventory, perhaps influenced by Amazon HQ2, but absolutely following a trend.
“The effects we’re seeing now are the same any time there’s economic growth that’s attracting new workers to a region,” said Dr. Terry Clower, director of the George Mason University Center for Regional Analysis.
And $308,000 is the highest the median price has reached this year, including the median prices for July and August. If this year follows normal trends, the median price won’t go any higher this year.
July 2018 to July 2019
Grade: U for Under Contract
Even with low inventory, low interest rates continue to incentivize buyers to find the home they’ve always wanted. And it looks like in July, many buyers looking in Arlington succeeded! Pending listings, those that have gone under contract on their way to a final sale, were up in July 2019 almost 13% over July 2018.
“With the very buyer-friendly interest rates, it seems that will only continue to drive the demand for housing – with a realization that a buyer needs to be prepared and act quickly if a home shows well and is well priced,” says Northern Virginia Association of Realtors® (NVAR) President-elect Nicholas Lagos.
August 2018 to August 2019
Grade: L for Low Inventory
The theme of the summer is low inventory and inventory took another dip in August. “Housing inventory has been steadily declining since 2015 and is continuing to fall,” said Christine Richardson, president of the NVAR. “In August of 2018, we had 3,874 homes on the market for sale in Northern Virginia, whereas last month we had only 2,591 properties on the market, which is a 33% drop in inventory.”
“This [low inventory] is not something that emerged all of a sudden. …[N]ot something that happened because Amazon HQ2 was announced in November. This is a continuation of the trend,” Dr. Clower said.
Fortunately, realtors and buyers continue to be educated and cautious in their transactions. So while prices are rising, they are not escalating quickly.
Overall
Grade: G for Great time to Buy or Sell!
While it is definitely a Seller’s market, with low inventory and plentiful buyers, but it’s also a great time for buyers, with low interest rates making borrowing easier than it has been in a long time. If you are looking to buy or sell a home this fall, call Geva and Jane today to see what the market is like in your neighborhood!
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