If there was ever any doubt in your mind that we’re in a seller’s market, the latest Fairfax County stats should put it to rest. As we finished off the month of March, the Fairfax County market was down to just about a two months’ supply of homes for sale. Brace yourselves as we break it down by home type: While there’s a 2.8-month supply of single family homes, supply of townhouses is down to 1.4 months, and condos are down to 1.3 months of supply. Six months of supply typically signifies a balanced and healthy market, and anything below that makes for a seller’s market. More than six months’ supply tips the scale toward buyers. The good news is that the number of homes for sale in Fairfax County did increase by more than 10% month-over-month. But it wasn’t enough to keep up with demand, as the number of homes sold was up by more than 35% in the same time period.
The second piece of good news is that despite what you learned in Econ 101, low supply and high demand have not caused home prices to skyrocket. In fact, they’ve remained fairly stable over the last year. “In addition to lenders and appraisers being more conservative, the increasing trend toward all-cash deals we’re seeing is helping to keep local housing prices stable,” explains Redfin Fairfax agent Ana Ventura. “Cash is king, and buyers with cash enjoy price discounts. If a seller has a choice between a cash buyer (investor) or a buyer who is getting a loan, the seller will almost always choose the cash offer, even at a lower price. Cash buyers can close quickly, usually in less than 30 days, and sellers don’t have to deal with appraisals or financing contingencies.”
For a complete picture of the Washington, DC area market’s most recent stats and trends, download the Redfin Market Report here: Redfin-Washington-Real-Estate-Market-Report-March-2012.