2021 has been a wild, wild ride in the real estate market! The year started out with a bang and a market frenzy that even had the 2020 market beat. Then, we saw a steep slow down July – September as many people resumed travel and got settled back into school routines after a long hiatus.
It’s been an interesting shift as the dialogue around the market hasn’t changed, even as conditions have adjusted. Homes that were getting 10-15 offers in the spring might be getting 2-3. Home’s that had 2-3 might be sitting on the market for a few weeks with no interested parties. Yes, we are even back to the days of seeing price reductions and getting contracts through WITH contingencies. Yet, many buyers are still sitting on the sidelines who were burnt out or intimidated by the crazed spring market of 2021.
So far in October and November, we’ve seen some of these buyers return to the market as news hit that interest rates are expected to go back above 4% by the spring. It is proving to be a good time both to buy and sell. Sellers in 2021 are capitalizing on incredible buyer demand and how Covid has changed the meaning of home. Fall 2021 buyers are similarly capitalizing on the low interest rates as well as a more balanced offer process. This month we have also seen an increase in off-market sales as more and more clients who had targeted a Spring move decided to move up their timeline and take advantage of the Compass Coming Soon program.
Similarly, we’ve seen prices level off a bit in both Arlington and Alexandria in September and October compared to the fall of 2020. Homes have also sat on the market a bit longer as for instance in September of 2021 homes in Alexandria were on the market for 30 days as opposed to 21 days in 2020. Election angst in 2020 may have contributed to a swifter market in 2020 while this year we’ve returned to a more “normal” feeling market. Fairfax County on the other hand saw about the same number of sales in 2021 compared to 2020, but they did however see the average sales price increase as buyers have determined they don’t necessarily need to live close to where they work anymore.
Whether you’re thinking about buying or selling, or both, we are here to help. Please reach out and we would love to help you come up with a customized plan for helping you reach your real estate goals!