By Natalie Roy (Bicycling Realty Group | KW Metro Center) and John Eric (Compass Real Estate)
Lyon Park is one of DC’s most desirable areas, as it provides the best of urban/suburban living with its easy access to stores, shops, and restaurants. Not to mention that the commute to many jobs is very easy. Numerous corporations have chosen Arlington to host their corporate headquarters, which will only continue to drive up the desirability of our neighborhood.
Pricing in Lyon Park generally sits on the higher side, and our current market inventory is still bearing that out. Limited inventory always means high prices. The COVID era created a hyperactive sellers-market, with much more demand than inventory. Remote-working professionals wanting to improve their living situation, historically low interest rates and low inventory set the market on fire. For competitively priced homes, multiple offers, waived contingencies, and escalations over list price were the norm. Offers made sight unseen and contracts done in one day were not unusual. Home prices skyrocketed, increasing 20%-30% in just over two years.
However, we are seeing an easing in the market due to inflation concerns as well as the rise in interest rates. While there is still competition, home inspections and financing contingencies have returned, and if a home is not competitively priced or presented well, it will sit longer on the market. Buyers are becoming pickier because of the cost of the home (price + interest).
Housing inventory continues to be a challenge. In June, active listings in Arlington were down again by 20% from the same time last year. With a decrease in supply, one would expect to see an increase in average prices, and in fact the average sales price in June was up a slight 2% in the past year. Unit sales were down by 21%, pushing Months of Supply up to a moderate 1.5 (this means it would take about 1.5 months for all available inventory in our market to sell). The average days a house sits on the market experienced no change, continuing to hover around three weeks.
At the end of the day, unless you are an investor, you should worry less about resale value and more about what kind of home you will enjoy living in. If the past is any indicator, this region is very resilient. It has been able to weather many economic downturns and should be able to do so in the future.