Alexandria Virginia Market Update: Staying Flat Is A Win In 2011

On the surface a look at Alexandria real estate is pretty much a yawn. Prices have essentially flat lined over the last year, however, it is the back story that explains why this has been the case. A vast set of variables dictate market behavior, and though the ones below only tell part of the story it is a rather important part.

Currently Alexandria real estate prices are being squeezed by opposing forces. As you will see in the second chart below, total inventory is on the way down, which will often result in a rise in average prices. On the other hand, as shown in the third chart, average days on market are on the way up. This is essentially neutralizing the effect the decrease in inventory would normally have.

It is a classic story of supply and demand, only in this instance, the reduction in demand has remained in step with the reduction in supply, which has left prices flat.

Even during the summer months as the supply of homes in Alexandria rose, the demand (as shown through a reduction in days on market) rose at a nearly identical rate.

It all fits neatly into the self fulfilling idea that the spring is the best time to sell, and the best time to buy. Sellers want to sell because that’s when you get the most buyers, and buyers want to buy because that is when most owners sell and thus you have the best selection. It is the eternal loop of the real estate cycle, but I digress.

Average Home Prices in Alexandria

Housing Inventory in Alexandria

Average Days on Market in Alexandria

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