In this month’s market update, we’ll focus specifically on Burke, VA, and specifically the 22015 area code. The entire DC Metro and Northern Virginia area are still struggling with low inventory and high demand, and Burke is no exception. High demand continues to put pressure on prices and increases competition for available homes.
So, let’s take a look at some of the specific data for Burke.
General Market Conditions
At a glance, we can see that close sales in April are way above the five-year historical average. Pending sales are also slightly ahead of the 5-year mark, which means we can also expect May closings to be higher than normal.
Listings are picking up, and could be an indicator that rising home values could finally be coaxing some sellers into the market. The number of active listings are near the historical average. While still less than demand, we can expect a bump in listings as families with children may take advantage of the summer vacation period to complete a move before the next school year. More consistent weather conditions may also bring more sellers into the market.
Months of supply is still lower than average but improving, 3-6 months is considered a healthy average months of supply, but Burke and the surrounding areas have not seen that much supply in years. Basically, short supply is the new normal. However, the amount of supply is near the 5-year average and will hopefully improve even more as we head into summer.
Let’s take a look at a few individual charts.
After an extended decline in new listings from May – December 2016, there has been a steep upturn in new listings each month from January to March. This is good news for home buyers, as increasing supply will help stabilize prices and reduce competition. It’s not enough to completely satisfy demand, but it’s a vast improvement from previous months.
Unfortunately, as fast as new listings are rising, closed sales and pending sales are also increasing, as seasonal demand has picked up after the holidays. Active listings are way below new listings, which means that many homes are selling nearly as fast as they come on the market.
Homes in Burke are selling at or above asking price in most instances, as evidenced by the Pricing Trends chart. Median Sales and Median List Prices are moving in lock-step, as are Average Sales and Average List Prices. A strong price-to-list ratio contributes to the increasing number of sellers entering the market.
After a slight dip in February 2017, prices have recovered with a vengeance in the Burke area, and are very near the recent high of August 2016. If sellers continue to enter the market, prices may stabilize and level off but likely won’t come down much due to the continued high demand.
There is never a better time than the present to move forward with any plans you may have to buy or sell a home in 2017. Waiting to try to time the market usually does not result in any added benefit. We are always here to help! If you are unsure of your home’s value or if you are thinking about buying or selling, contact Jason at 703-298-7037 or SandersNoVA@gmail.com.