January 2017 Mid-Atlantic Region Market Report

With mortgage rates still a bargain for now, as the new administration gets its sea legs, 1,110 homes sold in Fairfax and Arlington counties as well as the cities of Alexandria, Falls Church and Fairfax. Posting a 10 percent increase in sales, compared to this region’s 1,007 homes sold in January 2016, begins the year on sure footing.

“We are in such a prosperous region, but we are slowly weaning ourselves from our local economy’s dependence on the federal government,” said Northern Virginia Association of Realtors® Chairman of the Board Bob Adamson. “Smart home shoppers have decided to act before any changes in laws that might affect their homebuying. How great to start the new year with such positive sales prices and home sales up?” Adamson added that even though our Washington, D.C. region is transient, we still see the trend of people staying in their homes for longer than ever before, which affects inventory.

While the January market faced an under three-month supply, buyer foot traffic stepped up. “Traditionally January is a slow month with people getting over the holidays. However, this year we have not seen a slowdown,” said Lorraine Arora, managing broker for Weichert, Realtors®, Fairfax and the 2017 NVAR Chair-Elect. “Inventory is low and with interest rates possibly on the rise, buyers are out in full force.”

“Traditionally January is a slow month with people getting over the holidays. However, this year we have not seen a slowdown,”

Arora explained that bidding wars are taking place for homes priced correctly that show well. “My agents have seen large groups coming through their open houses,” she said. “In a couple of instances, agents at their open houses had to stagger visitors, as it was actually crowded. Weather has also played a large role.”

Noted NVAR CEO Ryan Conrad, while January shows favorable market data points, the lack of supply and the affordability issue remain regional realities. “It would be excellent if local builders could replenish first-time home buyer housing stock with a crop of new starts,” he said. “With job creation in our area at solid levels, demand is strong at entry- and middle-level price points. As the spring season starts soon, we expect our market to be moderate but truly competitive for many buyers.”

The Northern Virginia Association of Realtors® reports on January 2017 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.

A total of 1,110 homes sold in January 2017, a 10 percent increase above January 2016 home sales of 1,007.

Active listings decreased this month compared with 2016. Listings were down 16 percent below last year, with 2,730 active listings in January, compared with 3,256 homes available in January 2016. The average days on market (DOM) for homes in January 2017 was 68 days, a decrease of 9.33 percent compared to the 75 DOM for homes in January 2016.

The average home sale price rose compared with last January, to $550,069. This is up 3.23 percent compared to January 2016, when the average price was $532,863.

The median sold price of homes this January, which was $462,250, rose by less than 1 percent compared to the median price of $460,000 in January 2016.

The 1,478 new pending home sales in Northern Virginia in January marks an increase of 16.19 percent compared with 1,272 contracts that were pending in January last year. Total pending sales in January were up by 2.58 percent, to 1,910, compared with 1,862 pending contracts in January 2016.