Buyers Gain an Advantage in the DC Area Housing Market
In the recent years, sellers were usually the one with all the power within the real estate market. But now, buyers and sellers are used to increasing prices, low inventory, fast offers and bidding wars. To be technical, its still a seller’s market. But, there are some signs, that there may be a change in the market back towards buyers.
It’s been said that over the past year in the Washington area, the number of homes for sale have fallen throughout the years for 18 consecutive months. But, homes are still selling fast, with the average property finding a buyer in 27 days.
Let’s look at the market in Washington, Maryland, and Northern Virginia:
Within the District, inventory is pretty low. As the years have passed, the number of homes for sale have increased each year except for the month of January. The median sale price decreased 2.6 percent in September. The prices decreased throughout all home types, which are: single family, townhomes, condos, and co-ops.
The reasoning for the decline in price is that the overall condition of the homes do not meet the expectations of the buyers. Buyers just aren’t happy about the inventory of properties available at the moment. They want to get the home that they want if they’re spending an arm and a leg for it, therefore most are willing to wait.
There have been a decline in inventory year after year for almost 2 years. The median sale price in Montgomery County was $410,000 in September which increased 1.2 percent if you compare it to last year. But compared to Prince George’s county, there have been a fast price recognition this year. Prince George’s median sale price was $285,000, which was up 7.5 percent compared to last. The growth in price has been more than 3 percent every month since April of last year. In September of this year, sales increased 36 percent! First-time homebuyers are now migrating to Prince George’s county where they can get more for their money.
Northern Virginia consists of Fairfax, Loudoun and Prince William’s County, and the inventory were tremendously horrible every month this year. In the month of September, each county had less than three months of supply. Buyers don’t want the headache of dealing with a bidding war anymore. Buyers rather wait than settle for a home that’s overpriced in their budget.