May Housing Market called “A Breath of Fresh Air;”
Upswing Reflected in Inventory Boost, Sales Increases, Multiple Offers
Fairfax –The Northern Virginia Association of Realtors® reports that May 2015 sales transactions rose 7 percent compared to last year at this time. Inventory rose 16 ½ percent, roughly from a two-month supply of for-sale homes to a three-month supply.
“Our May housing statistics are trending exactly how and where we expected -- up,” said Mary Bayat, NVAR Chair. “Our solid market optimism results from our clients, who are negotiating signed contracts before interest rates rise. Consumer confidence is apparent in Northern Virginia. We have the lowest unemployment rate in the region, 3.8 percent. Our buyers are doing well, qualified and serious.”
Anticipating a moderate, but not over- active summer market in comparison to the spring market, Nicholas Lagos, Principal Broker of Century 21 Gawen Realty in Arlington, expects that properties closer in will move quickly.
“Overall, May was the breath of fresh air that we needed after a slightly stagnant start to spring,” said Lagos. “Properties started selling quickly after the first quarter of the year when housing inventory was restored,” he said.
“Once the flowers started blooming and the trees filled in, sellers and agents flooded the market with listings,” he said. “The activity was strong and, as always, if the house was priced properly and showed well, the property moved rather quickly.”
“We are fortunate in this area that we have many Realtors® who are realistic about pricing correctly, conduct research and use the stats available to us via NVAR and MRIS,” he explained.
When a house shows in great condition and is staged correctly, the result may be a well-timed sale, he pointed out. “Many Realtors® are particular about the condition of the house when it hits the market. They make sure to let sellers know to paint, clean, declutter, and make the house appealing.”
Since qualifying for a mortgage costs more now, buyers care more about condition “They are looking for turn-key homes and move-in condition,” Lagos said. “I had a listing that showed like a model, was priced fairly and, in turn, had multiple offers.
“Buyers are out looking, are well informed about pricing and when the right property comes along, they move on it,” he continued. “At the same time, with the expected uptick in interest rates, buyers realize that they may miss out on the historically low rates.”
“With Northern Virginia housing market numbers back up, the feeling among agents is that the market is very robust,” said Bob Adamson, a Realtor® with McEnearney Associates in Arlington. “In many parts of the market, ‘hot’ would be a better term since almost 50 percent of all properties are going under contract within 10 days of listing. With inventory up and new contracts and pendings up, the sales activity is just about keeping pace with the expanded supply.”
Adamson also observed that Arlington sales involve multiple offers, escalation clauses, and waiving or modifying of home inspection contingencies, all signs of a market with a strong rebound.
May 2015 Regional Home Sales Compared to May 2014: Northern Virginia
The Northern Virginia Association of Realtors® reports on May 2015 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.
A total of 2,142 homes sold in May 2015, a 7.21 percent increase over May 2014 home sales of 1,998.
Active listings continued to show a significant increase this month compared with 2014. Listings were up 24.85 percent over last year, with 5,672 active listings in May, compared with 4,543 homes available in May 2014. Homes took longer to sell this May than last year. The average days on market (DOM) for homes in May 2015 was 37, an increase of 15.63 percent compared to the 32 DOM for homes in May 2014.
The average home sale price rose slightly this May, to $573,682. This is a 1.35 percent increase compared to May 2014, when the average price was $566,044.
The median sold price of homes this May, which was $503,500, rose by 4.90 percent compared to the median price of $480,000 in May 2014.
The 2,550 new pending home sales in Northern Virginia in May is an increase of 8.56 percent compared with 2,349 contracts that were pending in May of last year.
NVAR Charts, Graphs, Social Media
For NVAR’s May 2015 housing data, click here.
To see our May housing stats infographic, click here.
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The Northern Virginia Association of REALTORS® serves as The Voice For Real Estate in Northern Virginia and provides a variety of services to its members including educational opportunities, professional standards enforcement, market statistics, legislative reviews, issues lobbying, multiple listing and lockbox services, and more. The purpose of NVAR is to enhance the ability and opportunity of its members to conduct their business successfully, to promote member professional competency, to maintain members’ adherence to the REALTOR® Code of Ethics and to promote the preservation of the right to own, transfer and use real property. NVAR has grown to more than 11,000 REALTORS® who carry out a real estate industry in a community of more than 2 million residents. Visit NVAR online at www.nvar.com, www.realtorschool.com, and www.realtorshop.com. Visit our new online school at www.razorpath.org. Contact the Northern Virginia Association of REALTORS® at 703.207.3200. The NVAR headquarters is located at: 8407 Pennell Street, Fairfax, VA 22031, with a second service center located in Herndon.
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