2020-12 -- Real Estate of Northern Virginia Market Report - December 2020 Real Estate Trends - Michele Hudnall

NOVEMBER 2020 NORTHERN VIRGINIA OVERVIEW ||
SELLER – BALANCED – BUYER MARKET ?
BUYERS
MARKET
BALANCED
MARKET
SELLERS
MARKET
Avg Months of Inventory 2019/12 2020/01 2020/11 2020/12MoM CHGYTD CHG YoY CHG
Alexandria City, VA 0.60 0.60 1.50 1.40 -6.67% 133.33% 133.33%
Arlington, VA 0.50 0.50 2.40 2.00 -16.67% 300.00% 300.00%
Fairfax City, VA 0.80 0.60 1.20 1.00 -16.67% 66.67% 25.00%
Fairfax, VA 0.70 0.70 1.10 0.90 -18.18% 28.57% 28.57%
Falls Church City, VA 0.40 0.80 0.80 1.00 25.00% 25.00% 150.00%
Fauquier, VA 1.50 1.60 1.20 1.20 0.00% -25.00% -20.00%
Loudoun, VA 0.70 0.70 0.80 0.60 -25.00% -14.29% -14.29%
Manassas City, VA 0.70 0.60 0.80 0.70 -12.50% 16.67% 0.00%
Manassas Park City, VA 0.80 1.60 0.80 0.60 -25.00% -62.50% -25.00%
Prince William, VA 0.90 0.80 0.70 0.60 -14.29% -25.00% -33.33%
MONTHS OF INVENTORY:
This metric is also called Absorption Rate meaning the number of months it would take to sell everything that is on the market.
Across the region we see only about a Month of Inventory and 2 Months in Arlington and still leaves all of the region in a 5 year
Sellers Market.
A Sellers Market is considerd 0 to 4 Months – Balanced Market is 4 to 6 Months – Buyers Market is 6+ Months. The NVA region
has not seen a balanced market in greater than 5 years. The Active Listings metric is the one to watch. As Active Listings begin
to rise and thus End of Month Inventory, only then will we see the Absorption Rate rise and shift the market.
Current growth in Inventory is driven by those Condominium cities with the Holiday Season stealing the Growth
momentum. Northern Virginia is more Inventory constrained than the National numbers, illustrates strong Demand
and is a long way from reaching a balanced market!
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