Northern Virginia Association of Realtors recently released the Year End 2014 vs 2013 market statistics report. The numbers are based on Multiple Listing Service sales in the Northern Virginia Region.
The report is mixed for the market in 2014. Overall, the median sales prices have increased about 2% on average. However, the number of closed sales is down a whole 9%.
As Fairfax County had three times more sales than the other included jurisdictions combined, Fairfax County had a huge impact on the overall statistics. In Fairfax County the median sales price increased just 1.1% and the number of sales decreased by 10%.
Falls Church City and Fairfax City saw prices rise in the 8-9% range while Alexandria was the only jurisdiction with a median sale price decrease.
The median price is the price level that half the homes sold above the price and half sold below. While it may indicate a general price appreciation, it could also simply mean that more expensive homes are selling and that entry level homes aren’t selling (e.g. due to first time home-buyers having a hard time obtaining financing etc.)
Another factor could be direct to builder sales. If you drive through parts of Falls Church, McLean and Vienna you will see an amazing number of older $700k homes being torn down to make space for new and larger $1.4M homes. Many of those initial sales happen directly from owners to builders as as-is sales and will not be reflected in the NVAR statistics for 2014.