February Market Report

With a chance of snow in the forecast it may not seem like it, but the spring market has definitely arrived and buyers are out in force, heating things up!  Statistically, this is the period with the most home buying and selling activity and this season will be no exception.

As you will see from the chart below, sales have increased in our zip code considerably over last year.  Total volume is up over 50% from February 2010 and up nearly 12% from last month.  For detached homes, the average sold price increased an impressive 57.7% (from $275,250 to $434,069) and attached homes sold prices increased by 21.24% ($136,452 to $165,434) over the same time period.  More detached homes have been sold this February than last with a 50% increase and the attached homes have seen slightly slower sales with a 26% decrease from last February.

That’s the good news.  Other statistics suggest that 22309 will see a measured recovery.  Days on market has creeped up from 44 to 68 on average, which means that homes have been sitting on the market a little longer before going under contract.  Also, the percentage of list to sold price has slipped.  A year ago, sales were very close to list prices (within 2 percent) whereas last month’s sellers on average cut 3-5% off their listing prices to sell.  The longer a house sits on the market, the less attractive it is to a buyer in general so sellers have had to lower their asking prices to meet demand.  Clearly, buyers are still very influential in controlling today’s market.

Another factor that is slowing the recovery of the market in 22309 and in the DC metro area in general is the tighter, more stringent standards for lenders.  The newer and as some have said, “unusually restrictive” mortgage rules have tempered the market’s recovery and will continue to do so for some time to come. 

Another way to look at this market is to view it in an historical perspective.  Each real estate cycle with its peaks and valleys lasts about 10 years.  We are now in year 5 depending on which date you pin on the end of the bubble from the early 2000’s.  So, we all have 2016 to look forward to!

Market Statistics for 22309 – Provided by the Metropolitan Regional Information Service

Statistic

Values

YoY

MoM

Total Sold Dollar Volume

$8,021,215

+50.2%

+11.94%

Closed Sales

29

-6.45%

+7.41%

Median Sold Price

$240,000

+50%

+4.35%

Avg Sold Price

$276,594

+60.56%

+4.22%

Avg Days on Market

68 days

+54.55%

-13.92%

Avg Sold to Orig List Ratio

97.31%

-3.29%

+4.22%