Fairfax, Va. – “In many ways, this is a tale of two markets,” says Derrick Swaak, partner and managing broker with TTR Sotheby’s International Realty in McLean, Va. and 2021 president of the Northern Virginia Association of Realtors® (NVAR).
“Demand for single-family homes is increasing and competition among buyers has reached a fever pitch, causing buyers to make aggressive offers to compete for those homes. On the other hand, the supply of condos for sale in our market has been growing for the last several months, and particularly when it comes to high-rise and luxury condos, there is a more balanced buyer-seller market,” Swaak says.
In January of 2020, there were 348 condos on the market in the NVAR region, which covers Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church. That number spiked to 859 in January of this year – an increase of 147%.
“The brisk level of sales which we experienced at the end of 2020 certainly continued into January, with dollar sales volume increasing by more than 30% across the NVAR footprint versus January of the previous year,” Swaak says. “The strong sellers’ market saw median sales prices increase 6%, while the median time on market for listings dropped 31% to only 13 days.”
Adding low interest rates and a limited number of available homes to the mix has created positive conditions for sellers of single-family homes in 2021.
“In a month that is typically slow, Realtors® representing buyers in our NVAR region experienced double-digit competing offers, price escalation and waived contingencies in January, and those conditions are continuing,” says NVAR CEO Ryan McLaughlin.