Location, location, location. I know it’s an old saw. I hate to even type it. But, when a real estate market changes as radically as ours has recently, people want to understand what’s going on. So perhaps this real estate catchphrase can help us make sense of today’s market.
Surely you know that homes are selling slowly in the Washington metropolitan area. But did you know that the market climate varies widely, depending on your location? Furthermore, the kind of home you are talking about makes a huge difference.
In the city of Alexandria in June, sales chances were 23 percent — one of the highest in the region. However, that 23 percent covers all housing types.
You are probably only interested in buying or selling one kind of home, be it a condo, town home or single-family. That’s why today’s charts give you sales chances by product type.
Sales chances are my way of measuring the level of competition in the real estate market.
Dividing sales figures for the month by the inventory on the last day of the month results in a percentage; a figure below 20 percent indicates a buyer’s market. Higher figures mean we’re in a balanced market or a seller’s market.
So, if you are a buyer who hasn’t yet determined where you want to live, the charts will show you where the most condominiums are found, for instance.
If you are selling a condo right now, these charts will give you a sense of how well they are selling in your area.
Take Alexandria, for example: If you are selling a single-family home there right now, you are sitting pretty. Sales chances of 40 percent make that a seller’s market for sure.
Buyers, however, want to look for the low percentages. If you are in the market for a town home, the best place to shop might be Prince William County. There were 2,000 to choose from in June, yet only 9 percent sold. That means buyers had significant leverage over sellers in June, and probably will for months to come.
— Chris Sicks
Contact Chris Sicks by
e-mail (csicks@gmail.com).
The statistics in this story reflect a metropolitan area that includes the Maryland counties of Montgomery, Prince George’s, Anne Arundel, Howard, Charles and Frederick; the Virginia counties of Arlington, Fairfax, Loudoun, Prince William, Spotsylvania and Stafford; the city of Alexandria; and the District.
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