Low Supply Fuels Ever-Present Sellers’ Market

Year-over-year home prices continue to climb throughout the region, with healthy average price increases tallied in August over August 2020 everywhere from D.C. to the far reaches Prince Georges county.

Month-to-month is always a bit different, though. From July to August of this year, Montgomery and Prince Georges counties prices rose about 1 percent, while Arlington County dropped 6 percent, Alexandria dropped 9 percent, Fairfax City and Prince William Counties dropped 3 percent, and D.C. and Fairfax County dropped 2 percent.

With August traditionally a slightly slower month, these numbers are no cause for alarm, as month-to-month price swings often can be dramatic. More important, long-term trends continue to reveal a strong sellers’ market with inventory still quite low—but with likely COVID-influenced demand that continues to favor Prince William, Prince Georges, and Montgomery counties.

Average sale prices in August were 13.1 percent higher in Prince William than in August 2021. In Prince Georges County prices were up 10.4 percent, and in Montgomery County they were up 9.4 percent. Elsewhere in the region, D.C. prices were up 6.8 percent, and Fairfax County up 6.7 percent. Falls Church City average prices were up 33.8 percent over August 2020 (with big statistical swings often due to fewer home sales). Still, Alexandria City and Arlington County posted average sale prices 2.8 percent lower last month than in August 2020.

Demand trends in Prince William, Montgomery, and Prince Georges counties continued to influence days on market as well. While up slightly from the previous month, days on market were much lower in August 2021 than in August 2020. Prince William County average days on market dropped from 14 to 10, Montgomery County dropped from 24 to 16, and Prince Georges County dropped from 24 to 14.

Closer to the city, the numbers continued to head in the other direction. In Washington, D.C., days on market were up from 25 in August 2020 to 26 last month. Arlington County days on market climbed from 14 to 22, Alexandria City climbed from 15 to 20, and Fairfax County days on market increased from 16 to 17 days for the same period.

Even with the appearance of some leveling off as we head into the fall, the overall region real estate picture remains pretty steady with many more buyers out there than sellers.

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Christopher Prawdzik and his wife Angela Logomasini are licensed Realtors® with Samson Properties in Alexandria and are members of the Northern Virginia Association of Realtors® Top Producer’s Club. Operating as D.C. Region Real Estate, they offer comprehensive real estate services, including 4½% full-service listings, throughout the entire Washington, D.C. real estate market. Angela is licensed in Virginia, Washington, D.C., and Maryland. Christopher is licensed in Virginia and Washington, D.C. In addition, Christopher holds a broker license in North Carolina and is affiliated with McGary & Associates.

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