2020 has been an unbelievable year in so many ways. Who would have thought possible the amount of change we have all had to endure and live through? Some have thrived, many struggled and some have failed. Everything considered, real estate would arguably been one insustry that has done very well.
So, where is real estate now that Thanksgiving is over and 2021 is approaching? If the last half of 2020 is any indication, 2021 is in for a great year. In 2020, while sales slowed significantly in the spring, the market has been full steam ahead since. In many areas single family homes have been flying off the market with multiple offers and prices far above asking. In Tysons Corner, homes have been selling well while condominiums have been slower in Tysons Corner condominium communities like Gates of Mclean, One Park Crest and Fountains at Mclean.
The graph below shows the marked slowdown of homes being listed for sale in the Tysons area in the spring.
Real estate sales likewise recovered in July and is now back to the 5 year average.
To put the numbers in a regional perspective, NVAR put out year-over-year statistics for October 2020 for the region.
No Slowdown in October for Northern Virginia Home Sales
Record October Sales and Listing Activity Reflects Pent-Up Demand for Both Sellers and Buyers
Fairfax, Va. “Not since 2004 has the number of home sales been this high during the month of October in our Northern Virginia footprint,” says Nicholas Lagos, associate broker with Century 21 New Millennium and 2020 president of the Northern Virginia Association of Realtors® (NVAR). “And for the first time since April 2016, the number of monthly active listings has reflected a year-over-year increase.
“We continue to be encouraged by new listing inventory, which is up by more than 42% over last year. This provides a greater opportunity for buyers to enter the market, especially with historically low interest rates,” says Lagos.
“Realtors® in the NVAR region sold nearly $1.5 billion dollars in real estate for the second month running in October, a 42.53% increase over October 2019,” says Lagos. “This represents 2,220 homes sold, which is the highest number of homes sold in the NVAR region in 16 years.”
Every jurisdiction in the NVAR service area, which covers Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church, showed an increase in the dollar volume of real estate sold during the month of October.
The fall market continues to outperform prior years, reflecting pent-up demand on the part of both buyers and sellers from the onset of pandemic conditions in the region.
So, will prices go up or down in 2021? I hope 2021 will build upon the great second half of 2020. We may have a bit of a rocky spring with restrictions still in place as we are waiting for the vaccine to be widely available. But, come late summer and spring, I believe things will really take off with schools opening, hiring commencing and buyers and sellers feeling more optimistic about the future.
The real estate market is very local. As mentioned earlier – in many communities homes are selling as soon as they are listed with multiple offers and waived contingencies. In others there is a slower or sales pace. Send us a message if you are wondering how things are selling in your community.