The following report contains Northern VA and Reston, VA market information pertaining to condos priced between $150k-$300k for Q1 2017.
Months of Supply:
This metric measures supply and demand in the market. It is calculated by dividing the number of active listings on the market by the number of homes sold per month on average during the previous 12 months. In other words, this metric tells us the number of months it would take to sell all homes that are currently listed in the market. Higher numbers indicate lagging demand and/or excess supply. Lower numbers indicate higher demand and/or low supply. To keep it simple, the lower numbers are good for sellers, while higher numbers are better for buyers. 4-6 months generally indicates a balanced market, less than 4 month’s is a sellers’ market, and more than 6 months is considered a buyers’ market.
Northern, VA Months of Supply ($150k-$200K / $200k-$300k)
Reston, VA Months of Supply ($150k-$200k /$200k-$300k)
Analysis: As you can see, there is a general slowing of the market as indicated by more months of supply starting in 2014 through 2016. 2012-2014 was more of a seller’s market compared to 2014-2016. However, months of supply seems to be on a downward trend from Q3 2015 to present. This could potentially indicate a shift in supply and demand in the market favoring sellers over buyers.
As a result of fluctuating demand as shown above, prices of condos in Reston have shown both growth and decline over the past 4-5 years. The chart below shows the average price/sqft of all sales of Reston condos from 2012-present. This trend can be important to take into account when determining whether or not you would like to sell your property or rent it.