Happy holidays from the Pierson Real Estate Team! As the festive season lights up our homes, we’re here to brighten your day with a quick market update. And, if as you celebrate the season, you find that your home no longer meets your needs, we are here to help you find the right one. Whether you are buying your first home, your dream home, an investment or downsizing we are here to guide you through the process. We are always reviewing the latest data so we can advise our clients well, so let’s dig in and take a look at what you need to know to understand the local real estate market.
We are in our typical seasonal slowdown as we approach the end of the year. The number of active homes for sale decreased slightly last month but remains level if not slightly increasing over last year. Overall it’s stable.
The months supply of homes remains under three months for all home types, indicating the region continues to trend towards a sellers market.
The one exception is the DC condo market which is at 6 months of supply. This is likely due to the continued trend of people relocating from urban centers to suburban and smaller cities, driven by the popularity of remote work and the desire for affordability and space. This is definitely something we will keep an eye on with all of the talk from the new administration about forcing everyone back to work in person. If that happens, it will be GREAT for DC.
Looking at the average sales price of condos over the past FOUR years tells an interesting story. In the suburbs of DC on the MD side, the average sales price us up 24% over the past 4 years. In the northern Virginia suburbs it’s up 13%, but in DC proper it’s down 2%.
When looking at the DC metro area as whole, prices have continued to climb for townhouses and single family homes, while condos are a bit flat mostly due to the excess of condos for sale in DC.
We are looking for more inventory but it’s been hard to find with the number of new homes coming on the market remaining pretty low, which is keeping prices strong.
So all of this data is interesting, but what does it all mean?
For buyers, the market indicators are that prices will remain stable to rising for all home types except DC condos. For those waiting for prices or interest rates to fall, there is no data to cause anyone to predict that will happen in the near future given our low supply and current inflation levels. So I don’t expect that it’s going to get much better in the near future, but the good news is you are buying into a very healthy market. The question is where do you want to be in the next 5-10 years and what’s the best strategy to get there. We do see a big buying opportunity for DC condos if the government forces people back to work.
For sellers, you remain in a good position. The question for you is what is the right home for you for the next chapter of life? We have worked with many clients recently who are looking to “right size”. Either kids are growing up and they need more space, or are moving out and need less space. Many empty nesters are cashing out and choosing to buy or rent a small condo locally and get a fun home at the beach or on the water. Also, there are a few really nice new condos and 55+ communities coming online that are providing great options for those who want to simplify.
Whatever your situation is, we are here to help. Give us a call if you are looking to buy or sell a home and we will create a strategic plan to put all of the pieces in place for a smooth transition to your next home. We also have a buyer and seller brunch coming up in January at Wildfire in Tysons so keep an eye out for details on that.
