The average sales price of single-family homes sold in Fairfax County last month remained in seven-digit territory, and sellers were still getting in excess of 100 percent of asking price, even as the market begins to throttle down in the wake of rising interest rates and affordability issues.
A total of 1,754 properties went to closing across the county in May, according to figures reported June 14 by MarketStats by ShowingTime based on listing activity from Bright MLS.
That’s down 11.3 percent from the 1,978 transactions that occurred during the red-hot period of May 2021.
Sales were down but prices were up, with the average sales price rising just a hair under 10 percent to $805,497 and the median sales price up nearly as much to $715,000.
In terms of average sales price, the direction was higher in two of the three legs of the home-sales stool:
• The average sales price of single-family homes in May was $1,050,934, up 9.8 percent from a year before.
• The average sales price for attached properties, such as townhouses and rowhouses (plus condominiums), was $517,784, up 6.4 percent.
• The average sales price in the condo-only segment was $363,318, down 1.5 percent.
A total of 365 properties changed hands for more than $1 million, including 19 in the $2-million-to-$5-million range and two for more than $5 million.
Add up all the sales and prices, and total sales volume for the month stood at $1.35 billion, down 3.8 percent from a year before owing to fewer transactions.
The market may have started facing headwinds in the spring, when these sales were consummated, but data suggest homes sold briskly and without much quibbling.
The average number of days on the market for homes that went to closing in May was eight, an improvement from 11 a year before, while the average sales price represented 104.3 percent of original listing price, up from the already impressive 103.5 percent a year before.
Conventional mortgages represented the method of transacting sales in 1,251 cases, followed by cash (242), VA-backed loans (194) and FHA loans (42).
Though it is creeping up, inventory remained tight and well below 2021 figures for the month. The 1,138 properties available for purchase at the end of May represented a decline of nearly 156 percent from a year before.
Where is the market heading? There’s been a decided cooling at least in the frenetic pace prospective buyers have been put through during the worst of the inventory shortage, as more properties have come on the market and some buyers have simply moved to the sidelines.
As a result, the 1,763 pending sales reported in May marked a decline of nearly 27 percent from a year before, suggesting sales will continue to be constrained for the next few months. After that? All bets are off.
All figures represent most, but not all, homes on the market. All May 2022 figures are preliminary, and are subject to revision.