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KW Metro Center Q2 2020 Market Report

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KW Metro Center Presents NORTHERN VIRGINIA, MONTGOMERY COUNTY & WASHINGTON, D.C.

Q2 2020

MARKET REPORT

®


A MESSAGE FROM THE BROKER-

The Greater Washington DC Real Estate market showed surprisingly strong results in Q2 of 2020 despite the current Covid environment. Although home sale prices continued their march upward, showing strength across all jurisdictions particularly in the YTD increases, inventory levels continue to slump while DOM (days on market) have declined to their lowest levels that in the past several years. Historically low interest rates continue to drive buyer demand but plunging inventory levels will continue to be the greatest obstacle for sustained growth. Home sale prices have been the stand out performers in this unpredictable market with NOVA (+6.5%) once again leading the pack with the strongest YTD growth in Arlington County (+10.8%), Loudoun County (+7.4%), Prince William County (+6.8%) and Fairfax County (+6.8%). Prince George’s County posted a sterling YTD home sale price increase of +9.6% with Wash DC coming in at +4.1 and Montgomery County landing at +2.9%. Impressive numbers across the metro area in this highly unpredictable market. Despite market uncertainty and the loss of jobs (approximately 502k as of May*, primarily in the travel and hospitality sectors) across the greater DC market, homes are being snatched up as quickly as they come to market. Moving forward into 2020, a new wave of concern among other industries (tech, professional & business services) regarding potential lay offs and wage reductions could impact the housing market in the second half of the year. However, as of now low interest rates, pent up buyer demand and consumer confidence in real estate as a safe haven continues to fuel our housing market. Several aspects of the housing market brought much needed confidence during this turbulent time. Purchase mortgages were up anywhere from 1333% (depending on locale) for resale & 54% YOY for new construction nationally. Housing starts jumped 17.3% in June with single family and multi generational housing leading the way. Additionally, third party participants (lenders, title & other servicers) have added new technologies and refined their electronic processes such that remote and online settlements have become commonplace and will continue to be so for the foreseeable future. Traditionally, buyers and therefore homeowners chose to live where they chose to work. The recent massive change of American workers working remotely from home (56%)** could upend housing preferences as ¾ quarters of these workers would like to continue to do so. Exurbs, suburbs and smaller towns could be the prime beneficiaries of this new “work from home” environment as online searches for single family homes in outlying areas bare out this recent trend. There are many opinions as to where the real estate market is headed in the second half of 2020. Here in the DC metro area, we’ve had the good fortune to be somewhat insulated from the volatility other metro areas have historically experienced. We’ve seen continual stable price growth across our markets but lagging inventory levels hamper the ability for it to perform at it’s optimal potential. Employment concerns, reticent sellers and uncertainty in general will factor into where our real estate market lands in 2020. In the meantime, sellers continue getting top prices and buyers scramble to compete for the most desired homes available. Seems like some things never change…

-Jim Lyons, Associate Broker *Washington Post 5/21 (John D Harden) **Zillow 5/13 PRNewswire

KW METRO CENTER ALEXANDRIA · ARLINGTON · TYSONS · VIENNA All information deemed reliable but not guaranteed. Data sourced from Bright MLS Photo credits to Christine Sennott, Suzi Welch & Red Door Metro


C O N T E N T S M A R K E T S U M M A RY 3

DMV

MARKET

ANALYSIS

NO R T H E R N V I RG I N I A 6

ALEXANDRIA

6

ARLINGTON

6

FALLS

7

LORTON

8

LOUDOUN

CHURCH

7

McLEAN

8

S P R I NG F I E L D

8

VIENNA

8

WOODBRIDGE

WA S H I N G T O N D.C. 10

CAPITOL

HILL

10

D OW N T OW N

10

D U P O N T

11

F O G G Y

11

G E O RG E T OW N

11

K A L O R A M A

11

L O G A N

C I RC L E

12

M O U N T

P L E A SA N T

12

S H AW

12

W E S L E Y

B O T T O M / W E S T

H E I G H T S

M O N T G O M E RY C O U N T Y 14

B E T H E S DA

14

C H E V Y

14

P O T O M AC

15

P R I NC E

15

R O C K V I L L E

15

S I LV E R

C H A S E G E O RG E ’ S S P R I NG

E N D


Q2 MARKET SUMMARY 30 25 20

Q2 2020

DAYS ON MARKET

15 10 5 0

$ 800,000 $ 700,000 $ 600,000 $ 500,000

Q2 2020

$ 400,000 $ 300,000

AVERAGE SALE PRICE

$ 200,000 $ 100,000 $0

12,000

Q2 2020

UNIT SALES

10,000 8,000

6,000 4,000 2,000 0

4


NORTHERN VIRGINIA

“

“

Northern Virginia posted strong price growth for the 2nd quarter of 2020 with average home sale prices growing at +4.8% in Q2 and +6.5% YTD. Demand, low interest rates and lack of inventory continue to be the drivers behind these price metrics. Active listings were down -42.3% quarter over quarter as unit sales fell almost -19% against the same period LY. Homes continue to sell as fast as they come on the market with DOM (days on market) averaging only 22 days or -12% over LY.


2019 129

2020 118

% -9

avg sold price Single Family avg days on market

$959,698 15

$998,254 17

+4 +13

units sold avg sold price

296 $751,069

223 $731,690

-25 -3

14 407 $369,464 13 333 $1,092,281 23

13 306 $394,423 14 223 $1,112,937 23

-7 -25 +7 +8 -33 +2 -

units sold avg sold price Townhouse avg days on market

126 $644,451 13

125 $670,017 10

-1 +4 -23

units sold avg sale price Condo & Co-op avg days on market

449 $457,110 17

312 $469,757 13

-30.5 -3 -24

49

32

-35

$1,086,170 24

$1,143,780 20

-5 -17

units sold avg sale price Townhouse avg days on market

11 $901,755 6

4 $769,000 5

-64 -15 -17

units sold avg sale price Condo & Co-op avg days on market

17 $582,589 38

13 $409,538 7

-24 -30 -82

units sold

Alexandria

Arlington

Townhouse avg days on market units sold avg sold price Condo & Co-op avg days on market units sold avg sold price Single Family avg days on market

units sold

Falls Church

avg sale price Single Family avg days on market

MARKET BALANCE

6,1 8

nits sold Q2 u 2 5

9

single family homes

The market balance is determined by the average months of supply, June 2020

01

NORTHERN VIRGINIA

→

18% SELLERS

BALANCED

5,068 units sold Q2 2020

$3.67B

TOTAL SALES (SINGLE FAMILY HOMES) Q2 2020

6

BUYERS


Photo Courtesy of Red Door Metro

units sold avg sold price

2019 53 $679,237

2020 60 $706,914

% -12 -4

21

16

-24

Lorton

Single Family avg days on market

Loudoun

units sold avg sold price Townhouse avg days on market units sold avg sold price Condo & Co-op avg days on market units sold avg sold price Single Family avg days on market

77 $442,222 11 14 $273,720 7 1030 $676,432 22

65 $415,183 12 17 $292,747 8 913 $709,282 20

-16 -6 +9 -21 -21 +7 -11 +5 -9

units sold avg sold price Townhouse avg days on market

971 $447,672 14

779 $470,551 13

-20 +5 -7

units sold avg sale price Condo & Co-op avg days on market

372 $330,885 17

307 $357,227 20

-17 -8 +18

7


2019

2020

%

183

127

-31

$1,449,220

$1,564,368

+8

33

40

+21

27 $791,619

19 $916,976

-30 +16

7 85

25 50

+257 -41

avg sold price

$496,929

$502,657

+1

Condo & Co-op avg days on market units sold avg sold price Single Family avg days on market

27 294 $600,629 12

21 221 $609,378 10

-22 -25 +1 -17

169

126

-25

avg sold price Townhouse avg days on market units sold

$432,790 10 37

$463,383 8 24

-7 -20 -35

avg sold price Condo & Co-op avg days on market units sold

$291,078 11 224

$310,400 7 169

+7 -36 -25

avg sold price Single Family avg days on market

$982,245 30

$1,032,501 28

+5 -7

63

33

-48

$668,912

$647,636

-3

Townhouse avg days on market

24

10

-58

units sold

46

27

-41

$383,352

$421,330

-10

Condo & Co-op avg days on market

20

25

+25

units sold

504

402

-20

$431,691

$456,808

+6

Single Family avg days on market

24

17

-29

units sold

440

349

-21

avg sale price Townhouse avg days on market

$315,485 17

$328,477 15

+4 -12

units sold avg sale price

157 $268,879

111 $290,330

-29 +8

19

15

-21

units sold avg sold price

McLean

Single Family avg days on market units sold avg sold price Townhouse avg days on market units sold

Springfield

units sold

Vienna

units sold avg sold price

avg sale price

avg sale price

Woodbridge

Condo & Co-op avg days on market

8


WASHINGTON, D.C.

“

“

Washington DC performed at an admirable pace with a home sale price growth of +5.7% for the quarter and a +4.11% YTD increase despite unit sales being down -28% quarter over quarter. Active listings were not as discouraging compared to the rest of the jurisdictions only being down -8.5%YTD. Neighborhoods delivered a mixed bag of results with Georgetown leading the way with a +56% increase in average home sale prices in Q2 and a +65% YTD increase.


2019

2020

%

6 $826,125

6 $832,825

+1

Single Family avg days on market

16

20

+25

units sold

113

72

-36

$1,098,518

$1,028,934

-6

19 62

15 34

-21 -45

$531,499

$597,709

+12

17 -

18 -

+6 -

avg sold price

-

-

-

Single Family avg days on market

-

-

-

units sold

1

1

-

$1,545,000

$500,000

-68

Townhouse avg days on market

7

134

+1814

units sold

43

19

-56

$532,800

$588,889

+11

20

37

+85

units sold avg sale price

-

-

-

Single Family avg days on market

-

-

-

units sold

7

1

-86

$1,419,429

$1,017,500

-28

Townhouse avg days on market

10

5

-50

units sold

38

11

-71

$546,584

$663,545

+21

21

22

+5

units sold avg sold price

Capitol Hill

avg sold price Townhouse avg days on market units sold avg sold price Condo & Co-op avg days on market units sold

Downtown

avg sold price

avg sale price Condo & Co-op avg days on market

Dupont

avg sale price

avg sale price

29%

nits sold Q2 u 2 0

9

1,3 1

The market balance is determined by the average months of supply, June 2020

01

condo & co-op

MARKET BALANCE

→

WASHINGTON, D.C.

Condo & Co-op avg days on market

SELLERS

BALANCED

927 units sold Q2 2020

$508.8M

TOTAL SALES (CONDO & CO-OP) Q2 2020

10

BUYERS


Foggy Bottom/ West End

Georgetown

2019

2020

%

units sold avg sold price Single Family avg days on market

1 $1,300,00 3

-

-

units sold avg sold price Townhouse avg days on market units sold avg sold price Condo & Co-op avg days on market units sold

1 $900,00 30 89 $640,699 56 4

1 $1,560,00 0 38 $670,247 48 6

+73 -100 -57 +5 -14 +50

$2,194,608 79

$6,808,317 50

+210 -37

27

23

-15

$1,507,756 38

$1,560,878 26

+4 -32

25

17

-32

$665,801 37

$1,066,306 47

+60 +27

2 $3,350,000

3 $2,449,700

+50 -27

188

83

-56

6 $1,324,583 17

3 $1,373,000 39

-50 +4 +129

48 $792,820 16

25 $678,988 27

-48 -14 +69

units sold avg sale price

-

-

-

Single Family avg days on market

-

-

-

10 $1,409,716 12

8 $1,019,00 17

-20 -28 +42

67 $724,838 23

34 $753,488 21

-49 +4 -9

avg sold price Single Family avg days on market units sold avg sold price Townhouse avg days on market units sold avg sale price Condo & Co-op avg days on market units sold avg sale price

Kalorama

Single Family avg days on market units sold avg sale price Townhouse avg days on market units sold avg sale price Condo & Co-op avg days on market

Logan Circle

units sold avg sale price Townhouse avg days on market units sold avg sale price Condo & Co-op avg days on market

11

-


2018

2019

%

2 $326,150 9

-

-

26

-50 +8 -4 -50 -11 -23 -

Mount Pleasant

units sold avg sold price Single Family avg days on market

Shaw

units sold avg sold price Townhouse avg days on market units sold avg sold price Condo & Co-op avg days on market units sold avg sold price Single Family avg days on market

$1,108,623 24 36 $546,553 30 -

13 $1,192,308 23 18 $488,833 23 -

units sold avg sold price Townhouse avg days on market

21 $1,143,265 11

15 $1,425,760 12

-29 -25 +9

17 $711,100 20

15 $749,541 18

-12 -89 -10

6 $1,852,583 32

7 $2,106,071 14

+17 +14 -56

units sold avg sale price Townhouse avg days on market

7 $793,301 51

6 $945,833 18

-14 +19 -65

units sold avg sale price Condo & Co-op avg days on market

29 $431,438 47

18 $543,694 42

-38 +26 -11

units sold avg sale price Condo & Co-op avg days on market

Wesley Heights

units sold avg sale price Single Family avg days on market

Photo Courtesy of Red Door Metro

12


MONTGOMERY COUNTY

“

“

Overall, Montgomery County delivered a reasonable performance given its active listings were down -40% quarter over quarter. Average home sale prices recorded a Q2 increase of +2.8% despite unit sales being down almost -22% and YTD home sale prices stand at a +2.9% increase. Prince George’s County experienced a very strong Q2 home sale price increase landing at +9.3% with a YTD increase of 9.6%. Unit sales were down -19% for the quarter while active listings plummeted to -43% from the previous year.


2019

2020

%

281

212

-25

$1,142,092 32

$1,200,924 32

+5 -

units sold avg sold price

23 $781,140

18 $914,111

-22 +17

Townhouse avg days on market units sold avg sold price

34 89 $435,644

39 73 $366,584

+15 -18 -16

45 94 $1,379,313

34 62 $1,508,432

-24 -34 +9

Single Family avg days on market

30

31

+3

units sold

10

10

-

$936,498 13

$780,800 43

-17 +231

51

31

-39

$564,778 49

$483,942 42

-14 -14

163 $1,101,118 42

127 $1,098,742 39

-22 -7

24

21

-13

avg sale price Townhouse avg days on market

$651,925 21

$656,455 38

+1 +81

units sold avg sale price Condo & Co-op avg days on market

3 $697,300 79

2 $719,500 133

-33 +3 +68

units sold avg sold price Single Family avg days on market

Bethesda

Condo & Co-op avg days on market units sold avg sold price

Chevy Chase

avg sold price Townhouse avg days on market units sold avg sale price Condo & Co-op avg days on market units sold avg sale price Single Family avg days on market

Potomac

MARKET BALANCE

nits sold 2 0

2,

8u 5 2

The market balance is determined by the average months of supply, June 2020

19

single family homes

21.5%

→

MONTGOMERY COUNTY

units sold

SELLERS

BALANCED

1,773 units sold 2020

$1.3B

TOTAL SALES (SINGLE FAMILY HOMES) Q2 2020

14

BUYERS


Photo Courtesy of Suzi Welch

2019

2020

%

2145

1608

$355,334 39

$389,847 30

-25 +10

739

585

-21

avg sold price Townhouse avg days on market units sold avg sold price

$289,773 30 345 $180,142

$302,143 23 291 $186,142

+4 -23 -16 +3

Rockville

Condo & Co-op avg days on market units sold avg sold price Single Family avg days on market

32 313 $594,270 22

29 268 $619,209 20

-9 -14 +4 -9

Silver Spring

units sold avg sold price Townhouse avg days on market units sold avg sold price avg days on market units sold avg sold price Single Family avg days on market

89 $557,540 25 144 $326,988 31 563 $514,452 24

79 $541,416 21 94 $344,090 27 393 $529,946 18

-11 -3 -16 -35 +5 -13 -30 +3 -25

151

89

-41

$375,388 25

$386,106 20

+3 -20

233

159

-32

$236,339 26

$239,001 36

+1 +38

units sold

Prince George’s

avg sold price Single Family avg days on market units sold

units sold avg sold price Townhouse avg days on market units sold avg sale price Condo & Co-op avg days on market

15

-23


get to know the good life.

KELLERWILLIAMS REALTY ®

ALEXANDRIA 1701 DUKE STREET SUITE 100 ALEXANDRIA, VA 22314 703-535-3610

ARLINGTON 2101 WILSON BLVD SUITE 100 ARLINGTON, VA 22201 703-224-6000

TYSONS 8133 LEESBURG PIKE SUITE 800 VIENNA, VA 22182 703-564-4000

VIENNA 144 CHURCH ST NW VIENNA, VA 22180 703-564-4000


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