Shocking Northern Virginia DC Housing Stats
10 Affordable Home Lies… NEVER Buy a Cheap Home Without Knowing This
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Quotes from my Grandfather
“99% of what you worry about will never happen” - Senator Charles J Colgan
Northern Virginia May Market Report
The Northern Virginia real estate market remains in high demand with limited inventory, leading to steadily increasing prices despite rising interest rates. Most areas are experiencing a scarcity of active listings, resulting in quick sales and numerous accepted offers above the asking price.
Pricing Trends Across the Region
The latest data reveals a dynamic relationship between demand and supply constraints in the real estate market across the Mid-Atlantic region. Although contract activity has shown a positive trend, with an 18.7% increase on a week-over-week basis, it still lags behind pre-pandemic and previous year levels by 19.6%. This discrepancy can largely be attributed to the current elevated interest rates, which have surpassed 6%.
Despite a noticeable shortage of inventory, consumers remain persistent in their desire for homeownership, leading to activity levels similar to those in 2019. Sellers, taking advantage of low mortgage rates, are reluctant to list their properties, contributing to a limited supply and intense competition.
Regarding pricing, the median price of new listings has risen by 2.3% compared to the same period in 2022. This upward trend in prices can be attributed to the constrained inventory. Even with the emergence of new listings, the supply remains significantly limited compared to 2019, indicating that prices are likely to remain high throughout 2023 in the Mid-Atlantic region.
Trends in Northern Virginia
The trends observed in most areas of Northern Virginia align with those seen throughout the region. New listings have declined substantially, with year-over-year drops of 45% in Loudoun County, 47% in Prince William County, 32% in Fauquier County, 34% in Arlington County, 41% in Fairfax County, 42% in Stafford County, 28% in Washington, and 39% in Alexandria.
Year-over-year new pending sales have also decreased across the area. Loudoun County is down by 27%, Prince William County by 32%, Fauquier County by 19%, Arlington County by 14%, Fairfax County and Stafford County both by 25%, Washington by 11%, and Alexandria by 24%.
Active listings have also decreased significantly in most areas, with many of them reaching or approaching their five-year lows. The only exception is Washington, which currently has 1,811 active listings, representing a five-year high.
The limited inventory has led to many properties being sold above their original list price. All areas, except Washington and Fauquier County, have an average sold-to-original list price ratio above 100%, indicating prices exceeding the initial listing price by a significant margin.
Understanding the Numbers in Context
The recent market trends in Northern Virginia reflect the broader Mid-Atlantic region but with heightened intensity. The strong demand, evident in above-asking-price sales and a notable decrease in active listings, highlights a robust and competitive marketplace driven by motivated buyers. The decrease in new listings and pending sales across most counties signifies a supply-side constraint that continues to exert upward pressure on prices.
Despite the market's relative resilience to fluctuating interest rates, the persistent shortage of inventory remains the crux of the situation. The declining number of listings in the area mirrors the supply challenges faced across the region. Washington, D.C., stands out with a five-year high in active listings, but even this is met with strong demand, as evidenced by its sold-to-list price ratio, which is close to the average.
These statistics affirm that the current market favors sellers, thanks to consistent buyer interest, limited competition, and the potential to achieve or surpass listing prices.
These numbers underscore the importance of preparedness and prompt action for buyers in this fast-paced market, where desirable properties sell quickly, and bidding wars are still commonplace.
10 Affordable Home Lies… NEVER Buy a Cheap Home Without Knowing This
Brace yourself for a jaw-dropping exposé! In this must-watch video, I unveil the shocking truths behind affordable homes that real estate agents won't tell you. From mold-infested walls to hidden termite damage, roof nightmares, and flood-prone zones, we're here to spill the beans on the pitfalls of buying a cheap house.
Prepare to be blown away as we reveal the top 10 affordable home lies that can turn your dream home into a living nightmare. Think you've found a steal? Think again! Chris Colgan with EXP Real Estate will guide you through the treacherous world of budget homes, exposing the deceit and danger lurking beneath their tempting price tags.
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https://www.ChrisColgan.com
Chris Colgan
EXP Realty LLC
Licensed In Virginia VA DPOR # 0225 075803 703-485-1435