The Northern Virginia real estate market had another busy month in May. With home sales at 63% over the same period last year, the region saw a continued frenzy of home buying.

The numbers tell the story. In Fairfax County, homes sold at 103.5% of list price on average – which is a reflection of the limited inventory available. In May there were 1,352 active listings in Fairfax County versus the five-year average of 2,227 listings. That is quite a difference and it was felt by buyers. Many buyers found themselves losing out in multiple offer situations with price escalation well over the asking price.

Homes moved quickly, remaining on the market an average of 13 days in May, down from 17 days during the same time last year. In some cases, offers were submitted on homes even while in the “Coming Soon” status, allowing sellers to go under contract without a single showing.

The number of new pending sales for May – which represent transactions likely to close in June – was 48% higher than last year – numbering 2,931 compared with 1,983 pending contracts last May.

Looking to next month, inventory continues to improve offering more homes for sale for buyers still looking. The number of new listings jumped to 3,452 in May, a 58% increase over the same time last year. We are also starting to see a slowing trend in the frenzy of showing appointments and a more balanced volume of buyers at open houses.  And while we still expect June to be a busy month – this may be indicative of the market shifting back to a more normal, pre-pandemic summer market.