How was Arlington, VA real estate market in July, 2020?
The market has certainly shifted – and in a big way:
1. The inventory of available homes in Arlington doubled from 0.9 months in July, 2019 to 1.8 months of inventory in July 2020!
It means that buyers had more homes to choose from and didn’t have to compete as fiercely as a year ago. 1.8 months of inventory means the market is heading towards a more balanced state (2.5 months is balanced in Arlington), prices should not be increasing as fast and not all properties will be getting multiple offers. The last time we had 2 months if inventory was November, 2018. It will be interesting to see if this trend continues.
2. We had 446 new listings come on the market in Arlington, VA vs. 258 a year ago. That’s 73% increase!!!
Why? Last year homeowners were holding onto properties due to Amazon’s announcement – it looked like their Arlington real estate investments were going to skyrocket for years to come, but with a lot of uncertainty about the post-pandemic economic future – a lot of them are not as confident. I think a lot of us are getting used to the pandemic at this point as well, understand how to protect ourselves and have been hearing good real estate news – so people are more confident in listing and dealing with the new reality. It is probably better to list now than next year. There’s no way Arlington is not going to be affected by this economic slowdown.
3. Average SOLD price increased by 20% in Arlington VA vs. last year from $685,000 to $828,000!
That’s a large upswing. Not all properties increased by 20% – most increases are for detached homes and townhomes. Condos are registering a 5% increase overall.
4. We had a dramatic -35% drop in total number of sales in May due to COVID – a couple of months later we actually have a 6.39% increase in July vs. 2019 (283 vs. 266 sales). As I mentioned earlier – sellers are more comfortable with the pandemic and don’t want to gamble with the uncertain future, and money is so cheap for buyers that they keep buying.
So what does the future hold?
Real estate market is holding strong here in Arlington, but with increasing inventory levels – I expect the prices to level off. The interest rates are too good for buyers not to buy – so I expect the demand will continue – as long as people can keep their jobs. Will they keep their jobs? It’s very much a white-color community doing a ton of government contracting work – I think the government will probably continue the contracts – at least for now. Amazon just rented some more office space here in Arlington – maybe the economy won’t be hit as hard as I expect. If you are thinking about selling – I think now is a good time to do that, because we probably will see some foreclosures and short-sales once people have to start paying their mortgages again (landlords haven’t been able to evict non-paying renters and can only carry properties for so long without rental income, and unemployed homeowners have been given 1 year off from mortgage payments). If you are thinking about buying, have a good amount if cash for down payment and are secure in your job – you might want to wait a little till the market is less competitive, but if you have no money for downpayment – now is the time – as money is so cheep. I am here for any questions! Call me/test me at 703-217-2077 if you are looking to buy or sell in Arlington, VA!