Arlington, VA real estate updates during coronavirus pandemic
Here we are – in a middle of a pandemic with lots uncertainty about the future of our economy and values of real estate. On this page you will find Arlington, VA real estate market updates during this crazy time – as I see them relevant.
How was May?
Arlington had 187 sold homes in April, 2020 vs. 289 in 2019 and 325 in 2018. That is a 35% drop in comparison to last year.
Active listings in May this year were 249 vs. 289 last year.
Average sales price is still rising – I will have exact numbers after June 15th, when official numbers are out.
Still very strong sellers market – we need more listings! You can see how low the supply of homes is in this chart. We need at least 2 months for the market to stabilize.
If you are thinking about selling – please call me today at 703-217-2077 and we can discuss the best strategy during this crazy time! Buyers – prepare to compete for any good listing – even in the middle of pandemic.
What is happening in Arlington, VA real estate world?
Arlington had 197 sold homes in April 2020 vs. 287 in 2019. That’s a 31% drop. But it’s a lot more than ZERO sales – which is what many people are thinking is happening.
Active listings in April this year were 254 vs. 245 in 2019. Very similar amount of inventory.
There were 41 listings in “Temporarily Off market” status – which means Arlington sellers are waiting to see what the market is going to do and when it would be safe to resume showings and the sale.
Arlington still has a lot of pent-up demand from last year and we are still experiencing a very strong seller’s market. I just settled a buyer who purchased in the middle of pandemic and had to beat 4 other offers, and paid 35k over the asking price.
There are companies providing disinfecting services after the weekend of showings – which can put some sellers at ease. I would gladly pay for this service for any of my sellers – just ask!
My townhome listing at 4097 Columbia Pike had 4 offers and went under contract in 4 days – please see the link here. We are waiting for settlement and expecting to close above list price. Call me today at 703-217-2077 for a free virtual consultation so I can guide you through the process and help you figure out the best strategy for the sale of your Arlington home!
- Our MLS data for March shows that inventory levels in Arlington are still at 1 month – which indicates a very strong seller’s market… many buyers are still looking, real estate market is very much alive:
2. March 2020 had the same number of new listings on the market as March 2019, but new contracts are down by 11% from 280 to 249.
3. Looking for a deal already? Not so fast – Arlington homes are still selling above list price.
4. My colleagues reported a number of appraisal issues for their transactions – appraisers started taking into account the uncertainty of the future into their valuations.
5. Here are the numbers for the activity in Arlington since the beginning of pandemic.
- Governor Northom announced “Shelter in Place” for Virginia, but real estate services are still considered “essential” – so we are still working and selling homes.
- Homes are still selling – I just submitted an offer for my client on a townhome in South Arlington and we had to compete with 3 other offers and are under contract for a lot more than the sales price.
- Interest rates have gone up since a week ago and continue to be the wild card in the market.
- March 31st we had 79 listings on Temporary of the market or Withdraw status – that’s 28% of total inventory and is a high number. This decreases the supply which might keep prices high.
- Here are the activity for Arlington real estate in the last week – you can see an increase in withdrawn and temporarily withdrawn listings.
- Please read the George Mason Fuller Institute report on affects of coronavirus pandemic in Washington DC economy here.
- No significant changes in real estate numbers since yesterday.3. Drastic decrease in showing activity: the average number of showings per listing in Arlington have dropped each of the last four weeks from 10.44 showings four weeks ago to 2.91 showings this past week.
- Homes are still selling in Arlington! 55 homes went to “pending” status in the last 7 days. (Last school day in Arlington was 3/13/2020)
- Open houses are very unlikely – look for photos and ask for virtual tours from the listing agent.
- BE CAREFUL and assess your own risk when listings and seeing homes – the virus can stay in the air and on surfaces from hours to days. It is YOUR responsibility to protect yourself – not seller’s, buyer’s or their agents’. Good listings still get a ton of traffic, but shortages of masks, gloves and hand sanitizer makes it difficult to provide homes with protective equipment.
- My office – KW Metro Center is closed to the public, but it open for private appointments.
- Here are the statistics numbers for Arlington Co today – I will be keeping track of this daily:
5. Mortgage interest rates have been fluctuating like mad on a daily basis. Buyers usually have a limit to what they can qualify for and what mortgage payment they can afford. Locking your rate in a timely manner is important. This uncertainty will scare away a few buyers, but they would risk higher interest rates after the pandemic.So what does the future look like? We don’t know yet. Recession is coming, but Arlington is a lot more resilient than other parts of the country.