Home Prices Rise Despite the Pandemic

Prior to the pandemic, the real estate market was hot even though the housing inventory was low but due to an increasingly high number of buyers taking advantage of the historically low mortgage rates that would result in lower monthly mortgage payments and more buying power led to multiple offers on properties in the DC Metropolitan area with less leverage for buyers to negotiate. A great example of this was a single-family home sold in Falls Church, VA for 170K above the asking price and received 37 offers in a single day. These activities in a highly competitive market escalated to bidding wars as some sellers were receiving offers dramatically higher over the asking price. This was certainly an unusual era unlike anything we had experienced in the real estate market in the DC area.

Thus far into the pandemic, single-family home values showed growth in 96% of Metro areas in first quarter of 2020, according to the National Association of Realtors. Furthermore, the national median home values in the first quarter of 2020 increased by 7.7% from the first quarter of 2019 based on the latest report from NAR. Some of the aspects that may have led to this robust stability in the home prices include the strong housing market demand leading into the pandemic, the low supply in the inventory and high demand of buyers.

What does this all mean to homeowners thinking about selling in today’s market?

1- This is the perfect time to sell your homes since home prices are still strong.

2- Majority of homeowners in today’s market have tremendous equity.

3- The limited inventory is an indicator of less competition for sellers leading to potentially higher dollars especially in cases of multiple offers.

4- Another beneficial factor for today’s sellers is that there are still a high number of buyers taking advantage of the low mortgage rates.

Overall, all signals are positive and advantageous for those planning to list their homes this summer.

Written by Mariam Mattin, Realtor

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