Our network

This Week In Vienna / Oakton Real Estate: "We're In A Buyers Market, Right?" | Business

Title (Max 100 Characters)

This Week In Vienna / Oakton Real Estate: "We're In A Buyers Market, Right?"
This Week In Vienna / Oakton Real Estate: "We're In A Buyers Market, Right?"

We’re in a Buyers Market - right?”

This is a question/comment we get a lot. And if you listen to the headline news on CNN or FOXNEWS or even some of the local networks & radio stations - it would make sense to think that. There is still lots of talk about foreclosures, heavy housing inventory & “getting a deal”.

So before we answer the question of whether we are seeing a Buyers Market or a Sellers Market in Vienna and Oakton, let’s define what we’re talking about.

  • A “balanced market” is defined as a market where there is 3-6 months of inventory on the market. So for example, if homes have been selling at the rate of 200 homes per month (this is purely an example) and there were 1,000 homes on the market - then there would be a 5 month supply of inventory. This would be a “balanced market” - where there is a healthy ”balance” between Buyers & Sellers - with no advantage to either side.
  • A Sellers Market is defined as less than a 3 month housing supply. (This is what we saw before the “bubble” popped.) In a Sellers Market, there is much more demand for housing than there is supply and therefore in general, the “advantage” goes to a Seller. In a Sellers Market you see multiple contracts on the same home, escalation clauses and other changes in contracts like people waiving inspections.
  • A Buyers Market is defined as a market with more than a 6 month housing supply. There is lots of inventory. Buyers have tons of homes to choose from and therefore have the “advantage” and can get “a deal”. Buyers can really negotiate - not just in terms of price - but in other areas. Buyers may get Sellers to pay closing costs or do more repairs to the home for example.

SO - the big question is . . . . what market are we in . . . .IN VIENNA AND OAKTON?

The last part of that question (”in Vienna and Oakton” is the most important. Because real estate is LOCAL. What is happening in Vienna may be very different than what is happening in Vermont. And what is happening in Oakton may be the complete opposite of what is happening in Omaha. So when you listen to the national news - you are only getting an overall picture. And while that is important in terms of may things - the economy, among others - what you really want to know when you are looking at buying and/or selling is . . . what is happening in MY area?

So, now to answer the question!

We monitor the statistics in our hyperlocal market of Vienna and Oakton on a weekly basis. And here is what we saw this past week:

  • Inventory in Oakton has dropped each week for the past 4 weeks. While at the same time, the rate of contracts has remained steady. This means that the number of months housing supply has dropped to its lowest point this year - 2.1 months.
  • Inventory in Vienna is at its highest point this year. However, the rate of contracts has remained high enough that the number of months housing supply in Vienna is similar to Oaktons - at 2.5 months.

“Technically” this means we are in a SELLERS MARKET in Vienna and Oakton!

(Why do I say “technically”? Because this is a general answer for the entire Vienna/Oakton marketplace. A better question if you are buying or selling would be to ask what kind of market we are in for the type of property you are looking for. When we are working with Buyers and Sellers, we do a much deeper analysis - depending on price range, type of home, school district, lot size, etc.)

So - does that mean if I put my home on the market it will sell right away?

Not necessarily - the fundamentals of real estate still apply: price, location & condition. For example, there are currently 19 homes on the market in Vienna and Oakton that have been on the market for more than a year (and 3 of these have been for sale for more than 2 years!) But that being said, what are we seeing statistically?

  • Last week - 43% of the homes that went under contract in Vienna and Oakton sold in a week or less. The overall average days on market for the homes that went under contract this week was 46 days. And the average days on market for homes that are actively on the market is 103 days.

Our advice to Buyers and Sellers is the same as last week: 

SELLERS

NOW NOW NOW is a great time to sell! Flowers are blooming, trees are filling out, your home will look its best. And more importantly INVENTORY IS LOW. This is optimal for you!

(In 2010, Belt Team listings in Vienna sold in an average of 22 days. That’s a whole month faster (and a whole mortgage payment saved) than the average agent. In Oakton and all around Northern Virginia, we had similar results. If you would like The Belt Team to represent you, contact us here or call (703) 242-3975).

BUYERS

If you have been looking for a while and waiting for that perfect home to come on the market, don’t give up. But DO make sure you are ready (with your loan fully approved, fund ready to write an earnest money deposit check, etc.) and that you have a Realtor on your side working in YOUR best interests. The Belt Team has assisted 4 Buyers already this year in finding their “ideal home” via networking & prospecting on their behalf to find homes for them that were not even on the market. (Contact The Belt Team if you would like us to help you find your “dream home”)

For our detail-oriented readers, here are last week’s stats:

Last week in Vienna Real Estate (22180,22181, 22182):

  • Number of Contracts: 21
  • Average Days on Market for Active Listings: 101 days
  • Average Days on Market for Listings That Went Under Contract: 40 days
  • Inventory: 227 homes on the market
  • Number of Months Supply of Homes (Based on past 90 day contract rate): 2.8 months
  • Number of Months Supply of Homes (Based on past 30 day contract rate): 2.5 months

Here are last week’s stats for Oakton Real Estate (22124):

  • Number of Contracts: 9
  • Average Days on Market for Active Listings: 109 days
  • Average Days on Market for Listings That Went Under Contract: 60
  • Inventory: 81 homes on the market
  • Number of Months Supply of Homes (Based on past 90 day contract rate): 3.1 months
  • Number of Months Supply of Homes (Based on past 30 day contract rate): 2.1 months

If you’re thinking of buying or selling a home, Contact The Belt Team for a more in-depth discussion & analysis - because it’s only the neighborhood YOU live in (or you WANT to live in) that matters!