Question: How has this year’s spring market compared to previous years?
Answer: I’ll provide an in-depth mid-year market analysis in July, but since we’re in the final weeks of the historically strong “spring market,” I thought it would be a good time to share County-wide market trends that represent what I’m seeing on the buying and listing side these days. Hint: Great for sellers, frustrating for buyers.
Owners Holding Out For Amazon
One of the big questions I had post-Amazon HQ2 announcement was whether owners would decide to hold onto their homes longer in hopes of higher long-term returns from Amazon or whether they’d accelerate their plans to sell to take advantage of a quick bump in prices and a faster sale cycle. The answer so far is that more owners are holding off on selling because new inventory is down significantly from last year, highlighted by a nearly 30% YoY decrease in new listings in April.
Low Supply Is Driving Prices To Record Highs
There has been a YoY increase in the average sold price since the Amazon announcement was released in November, highlighted by a 11.2% increase in April (chart #1). That increase led to an average sold price in Arlington over $742,000 which is the first time the average sold price broke $700,000 in 10+ years (chart #2)
The Average Buyer Is Paying Over Asking Price
For the first time in over 10 years, the average buyer is paying more than the asking price to secure a home in Arlington. In April, the average purchase price was .3% higher than the seller’s asking price.
Sales Are Going Through Much Faster
It is taking less and less time for a seller to find a buyer, with a YoY decrease in days on market each of the last six months, highlighted by decreases of 73% and 74.3% in March (median 10 days) and April (median 9 days), respectively.
If you’re interested in an analysis of how the current has impacted the value of your home or the value of the home you’re trying to buy, don’t hesitate to reach out to me at Eli@EliResidential.com to schedule a meeting.