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Wednesday, February 8, 2023
FairfaxReal EstateFairfax homes market has the buyers, needs some extra inventory

Fairfax homes market has the buyers, needs some extra inventory

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The Fairfax County real-estate market successfully made the transition from winter to spring in March, but a lack of inventory options continues to constrain prospective purchasers while pushing prices further into the stratosphere.

A total of 1,405 properties went to closing last month countywide, according to figures reported April 12 based on data provided by MarketStats by ShowingTime based on listing activity from Bright MLS.

That’s down 6 percent from the 1,493 transactions recorded a year before, but the better comparison is the bump up from 933 sales in February 2021.

That 50-percent month-over-month increase suggests that the normal ebb and flow of the local real-estate market (stronger in spring and summer, weaker in autumn and winter) seems to be back after a two-year derailment owing to COVID.

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The average sales price of all homes that went to closing during the month stood at $795,440, up from $713,873 a month before and increasing nearly 15 percent from $693,613 a year ago.

Prices were up in all three segments of the market:

• The average sales price of single-family homes in march stood at $1,119,228, up 15 percent.

• The average sales price of detached homes, such as townhouses, was up 9.2 percent to $503,637.

• The average sales price of condominiums was up 7.2 percent to $384,415.
Add it all up, and the market volume for March stood at $1.074 billion, an increase of about 6 percent from a year before despite the decline in sales.

A total of 290 properties countywide went to closing for more than $1 million, including 26 that garnered at least $2.5 million and four that sold for $5 million or more.

Homes that went to closing spent a mere 12 days, on average, between listing and ratified sales contract, an improvement from 18 days a year before, and garnered a whopping 104.3 percent of original listing price, up from 102.1 percent a year ago.

Conventional mortgages represented the method of transacting sales in 1,044 cases, followed by cash (164) and VA-backed loans (142).

Inventory has been an issue for several years, and the 761 properties on the market at the end of the month were down 19 percent from a year before and represented just a 15-day supply – an extreme sellers’ market By contrast, a supply of roughly three months is needed for a market to be considered balanced.

That lack of inventory is challenging buyers and their agents, and there seems to be no end on the immediate horizon. (Rising interest rates may be causing some buyers to reconsider their plans, but are causing others to jump into the market before they rise more.)

For March, total pending sales in the Fairfax County pipeline stood at 1,602, a decline of nearly 21 percent from a year before, largely because of the relatively slim pickings in the local market.

Figures represent most, but not all, homes on the market. All March 2022 figures are preliminary and are subject to revision.

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