The FOCUS on NoVA Real Estate team compares March and April of 2019 with post-Shelter-in-Place March 12th declarations and provides feedback for impacts to purchasers and sellers.

Governor Northam’s March 12, 2020 declaration of the Commonwealth of Virginia’s State of Emergency due to the Covid-19 health crisis had an immediate impact on the state and local economies, to include the real estate market.

The FOCUS on NoVA Real Estate team compared market data for Fairfax County for dates from March 1, 2019 – April 30, 2019 with that of the “post-Covid-19” dates March 13, 2020 – April 24, 2020. Here are the data:

• Closed Transactions were up 23.07% in 2020 compared to 2019 indicating that Fairfax County’s 2020 Real Estate Market was on tract to be a robust market. The kicker is these properties likely went under contract PRIOR to the Shelter-in-Place orders.
• Pending Transactions, those properties that went under contract “post-Covid”, in Fairfax County dropped 60-65% depending on the comparisons of new pendings versus all pendings. This is a direct indicator that the buyer pool is dropping.
• Days on Market, i.e. time an actively listed property receives and ratifies (accepts) an offer, for the post-Covid period maintained an average of 17-days on market and a median of 6-days on market. Despite a smaller pool of buyers, the days on market are swift and do not appear to be popping up.
• Active Transactions are indicative of the available inventory in Fairfax County. In 2019, March 1-April 30, there were 3777 properties available for purchase. For post-Covid, March 13 – April 24, 2020, 902. An astonishing 76% drop in available inventory.

Considerations as we move forward include:

• Real Estate is Open For Business!!!
• Courts, Banks, Lenders, and Real Estate Brokerages are ready to serve.
• Interest rates continue to be at historic low levels.
• Loan requirements are tighter now.
• Academic timelines are no longer in play as the schools systems have enacted distant learning. They no longer drive the June move-out/move-in deadline.
• Military PCS Season is post-poned through mid-May to early June. There is pent up demand.

Because inventory is low, sellers are positioned to have less properties to compete against. As loan requirements tighten, buyers will be better qualified and those out there are serious and ready to make a move.

In short, now is a great time to get into the Fairfax County real estate market.

For more information, contact the FOCUS on NoVA Real Estate team today.