The Northern Virginia housing market continued to strengthen in June 2017. Conditions are increasingly in favor of sellers in the region. Compared to June 2016, the median sales price increased almost 2% while the number of days on the market decreased by 15%. About half of the homes sold in June were on the market for less than 10 days.
Conditions for sellers saw an improvement over the previous month as well. The median selling price increased almost 1% from May to June. At the same time, the number of new listings decreased by 8.5% between May and June. A smaller amount of supply in the market should continue to push prices up and time on the market down even more.
City of Alexandria
Sellers in the City of Alexandria benefited from the strong Northern Virginia property market in June. The market effects witnessed throughout Northern Virginia are magnified in the Alexandria market. In June, there were 5% fewer properties on the market compared to June 2016 and the median sold price increased 20% from May to June 2017.
The number of new listings decreased by 8% between May and June, and the average number of days on the market remains below the 5-year average. Half of the properties on the market sell in less than 10 days. As a result, sellers in Alexandria should continue to benefit from these strong market conditions.
The already strong Arlington County housing market continued to slowly improve for sellers in June. The median home sales price increased 1.6% between May and June. At the same time, the number of days on the market decreased from 35 days in May to 31 days in June.
With 2.7% fewer new listings on the market in June, sellers should continue to experience strong demand for a smaller supply of homes for sale. In June, the market for 3 bedroom detached homes in Arlington County was particularly strong compared to other types of homes. Prices in that segment of the market increased almost 4% since last June.
City of Fairfax
All segments of the housing market inside the City of Fairfax experienced increasing prices and demand over the past year. Prices for 4-bedroom homes increased by over 20%. The overall market in the City of Fairfax continued to improve between May and June.
The median sales price increased by over 1%, and almost half of the sold properties were on the market for less than 10 days. While the number of new properties listed in June increased by over 10% compared to May, the market demand should not have any problem absorbing this new supply since buyers are still on average paying almost 99% of the list price.
City of Falls Church
The small number of active listings in the City of Falls Church housing market can create relatively high market volatility in the short-term. Over the past 5 years, there are an average of 33 active listings on the market in June. This June, so 35 active listings, two more than the 5-year June average, and 8 more over May 2017.
A 30% increase in active listings over the previous month, and a near 16.7% drop in homes going under contract, would indicate a softer market for June. However, when we take into consideration that June 2017 saw a 57.7% jump in new listings and a 19% increase of new pendings over June 2016, we can see that the market is not soft but rather the numbers are skewed by a larger than usual number of homeowners deciding to sell their homes.
Home prices are slightly down compared to last June, but buyers are paying an average of 99.4% of the list price. In addition, almost 60% of the listings are on the market for less than 10 days. While there may be a considerable amount of fluctuation in the average sales price according to the particular properties on the market in a given month, all signs point to maintaining strong market conditions for sellers in Falls Church.
The housing market in Fairfax County appears to be stabilizing in June. The median sold price increased just 0.2% from the previous month and almost 2% from the previous year. Half of the homes on the market in June sold in less than 10 days. June 2017 saw approximately 15% fewer active listings over June 2016, yet only a 3% decrease in new listings and a 1% decrease in new pendings over that same time.
On average, 70% of homes sales closing in June sold within 1% of their June 2016 average. So, market conditions for sellers should continue their slow and steady improvement. Condos, representing a little over 20% of all homes sold in June, saw an average of 5.27% price increase over June 2016, the highest increase among all types of homes.
While June 2017 was a little slower than May, this represents an expected seasonal market movement. Considering how many fewer active listings June had over the previous year, inventory still remains tight.
The median sales price in Loudoun County reached recent highs several months since the end of 2016. Even though the median sales price declined 1% from May to June, prices were still near those highs and 5.6% higher than the median sales price of June 2016.
In addition, the number of active listings on the market was 16% lower compared to June 2016 which, at 1551 active listings, is far below the 5-year June average in Loudoun County. As a result, the market outlook for sellers in Loudoun County should remain strong. Over half of the homes that closed in June were on the market for less than 10 days, and buyers paid more than 98% of the list price.
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