11 September 2015

Reston Real Estate Market Sees a Slower August

Reston Single Family Homes

The Reston single family home market has slowed down a little bit since peaking in the spring. There are high levels of inventory in Reston across all sectors, the single family home market is no different with 96 active listings as August came to an end. Total pending contracts and closings took a dip as well, peaking in May and June, we’re now down to 24 closed sales and 19 total pendings. The number of pending contract effects the number of closings the following month, with the lowest number of total pendings since January, we may continue to see a dip in activity as we move into the Fall market. Looking back at August 2014, we have 57.4% more active listings and fewer closed sales (-7.7%) and total pendings (-5.0%). Last year’s trend was similar to this year’s trend except we have more active inventory.

Pricing Ratios & Days on Market

The pricing ratios continue to be strong despite decreased market activity and high inventory. Homes closed in August with a median sold to list price ratio of 99.5% and a median sold to original list price of 97.5%. These numbers are great numbers to see, people are paying very close to list price for the homes that are closing. It also shows that when prices had to be decreased, they weren’t too far off, a median of 2%. Days on Market is another important statistic to look at when reviewing the market, especially if you’re thinking about selling your home! If you have a single family home in Reston, then be glad that homes sold with a median days on market of 22 days in August!

Reston Townhouses

The Reston townhouse market has had a great year so far and this market continues to be strong. There was a slight dip in closed sales and total pendings in July and into August but the market has to cool off at some point, right!? The number of active listings also took a slight dip, which is good for keeping the market competitive. We had 115 active listings at month’s end with 40 closed sales and 53 total pending contracts. When looking at historical data, there was actually a surge of new listings in September and October, so these two month’s had the highest inventory in 2014. We’ll need to continue to watch the market to see if this trend continues. If it does, it may show us that the late winter/early spring market is the best time to sell your townhouse in Reston. Below is the last two years of market activity so you can see how this trend develops, pay attention to February and March of both years, fantastic numbers!

Pricing Ratios & Days on Market

The pricing ratios are also strong in the townhouse market, homes closed with a median sold to list price ratio of 99.5% and a median sold to original list price of 97.4%. We’ve been seeing very strong ratios throughout the year, during the spring and summer months it wasn’t uncommon to have multiple offers on well priced townhomes in Reston. Of course they has to show well too but it was a very competitive market. The days on market has slowed down quite a bit in August, homes closed with a median days on market of 28. This is up from 12 days in June then 19 days in July but it’s still a pretty strong number when compared to other markets.

Reston Condo Market

The Reston condo market has very high levels of inventory this year and buyer demand has remained fairly consistent from March through August. This buyer demand doesn’t keep up with inventory though, total pendings have been mostly in the 40’s except for 2 months in the 50’s, inventory though has increased from 100 in February to 189 in August. Demand for Reston condos isn’t super strong and with so many on the market there isn’t much urgency in buyers. With 189 active listings, we are at a total of 42 pending contracts and 29 closed sales. The Reston condo market is a buyer’s market right now.

Pricing Ratios & Days on Market

Pricing ratios are also a bit lower in the condo market than in other sectors of Reston, in the graph below you can see the median sold to list price ratio has never reached 100%, in August it was 98.0% which is still pretty strong. The median sold to original list price ratio is quite a bit lower coming in at 96.2%. Median days on market for sold properties was 49 days, all these numbers are so dependent on each other, mostly trickling down from number of active listings compared to buyer demand. With low buyer demand, you’re going to see longer days on market and less favorable pricing ratios.

Wrap up

The Reston market is so varied depending on what type of home you have and where it’s located. Location is so important it’s one of those things you can never change. The Reston townhouse market remains strong as we moved through August with single family homes slowing a bit and the condo market lagging behind with high levels of inventory. We’ll continue to watch the market and bring your monthly updates as we move into the Fall to see if we continue to follow annual trends. It’ll be interesting!

To learn more about the market as it pertains to your house, don’t hesitate to reach out to use! You can sign up for a free home valuation HERE or fill out the form below to find a time to get together with us :)

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