Northern Virginia Housing Market is Changing
Sales are down 30% but home prices are still up!
While the housing market in Northern Virginia is changing, it still remains a seller’s market with low inventory. Year over year home sales volume has markedly decreased. The previous twelve months in the United States we had 4.75 million sales, compared to 6.2 million the year before that. So even though inventory is low, the number of transactions is diminishing.
In Alexandria City and Arlington, Loudoun and Fairfax Counties, listings are down in August about 30% year over year. Prince William County saw a drop of 24% and Fauquier County only a drop of 18%.
Homes are still still quickly throughout the area, with the average days on market in Arlington County was 23 for August, Prince William County was 15, Fauquier County was 23, Alexandria City was 18, Loudoun County was 16 and Fairfax County was 18.
Median sold price was up in most of the area. Alexandria City was the outlier with about a 9% drop to $543,500. Fairfax County was up 5.3% to $635,000. Prince William County was up 8.3% to $506,050. Loudoun County was up 7.3% to $660,000. Arlington County was up 1.5% to $639,450, and Fauquier County was up 3.1% to $535,000.
The number of active listings is decreasing. Fairfax and Fauquier Counties are seeing the lowest number in several years. Everywhere else is below the five year average as well.
The story is a bit different for new construction. Evidence is building that we are already in a buyer’s market for newly built homes. Many builders are giving concessions to buyers, including new appliances, move-in specials, and even new cars in some cases. Inventory of newly constructed homes is peaking over the last eight months, which means many buyers may be able to score an especially good deal as we head into the winter months where homes tend to move a bit slower and builders will be motivated to sell.
The Federal Reserve Bank did raise interest rates another 75 basis points on Wednesday, September 21. While raising rates has not had a significant effect on home sales as of yet, most economists believe the economy is poised to slow down on this interest rate hike.
Chris Colgan
EXP Real Estate LLC
Text me at 571-437-7575
