The INSANE Northern Virginia Housing Market of Summer 2023
Buc-ee's Coming to Virginia?
The INSANE Northern Virginia Housing Market of Summer 2023
In September, the Northern Virginia housing market has experienced significant shifts, primarily influenced by rising interest rates. As rates surpass the 7% mark, both buyers and sellers exhibit caution, impacting the dynamics of listings, sales, and average prices across the region.
The biggest question on prospective buyer’s minds is the rising interest rates. Rates have crossed the 7% threshold, and although there is reason to believe that they have peaked, it has added a considerable amount to the average monthly mortgage payment in the area. For context, using an average sale price of $585,000, each percentage point in the interest rate equals about $350 in the monthly mortgage payment. This means that payments have increased well over $1000 since this cycle of rising rates began.
The rising rates have sellers and buyers in the area leary to pull the trigger on new deals. For example, new listings are down roughly 15% YoY in Alexandria City, and new pendings are down over 10%. The median sold price is up almost 15%, though, and the average day on market is very close to the all-time low. This shows that although the market is slow, homes coming on the market are selling quickly and for top dollar.
Arlington and Fauquier Counties have seen the least change YoY. New listings are down roughly 7%, with new pending down as well. The average sale price is up a relatively modest 7 and 11 percent, respectively. Also of note is the days on market are right around average at about 25 days. These two counties have seen the least change YoY, with a closer to average supply of homes hitting the market.
On the other end of the spectrum are Stafford. Prince William, Fairfax, and Loudoun Counties with new listings down between 23% and 35%. Prince William County is among the tightest with new pendings down 27%, 13 days on market, and an average sold price over 100% of listing price. The median sold price is up 9% to $551,500.
Stafford County has seen new pendings plummet over 30%, although the median sale price is up just under 2%. Days on market are close to the historical average at 25 and homes are selling for 99% of the listing price.
Fairfax County has seen a 17% YoY decline in new pendings, but homes are selling extremely quickly with median prices up 12.6% to $715,000 and are selling at a 5 year low of 16 days on market for an average of 100.8% of the listing price.
Loudoun County also has a very tight market with new pendings down 23%, median sold price up almost 4% to $686,000 and a very short 15 average days on market. Homes are also selling for slightly above the asking price.
As you can see, the Northern Virginia housing market in September presents a mixed bag of trends. While rising interest rates have undeniably influenced buyer and seller behaviors, certain areas continue to thrive with homes selling rapidly and above their asking price. As the market moves through these challenges, it remains crucial for both buyers and sellers to stay informed and make strategic decisions.
Buc-ee’s First Virginia Location
Buc-ee's, the iconic travel center chain, is expanding its reach to Virginia, marking a significant stride in its quest for regional dominance. The forthcoming 74,000-square-foot location in New Kent County, situated at Exit 211 on I-64, boasts an impressive 120 fueling stations and ample parking with 557 spaces. Notably, this expansion will provide jobs for over 175 local residents, promising competitive wages ranging from $16 to $18 per hour.
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Chris Colgan
EXP Realty LLC
Licensed In Virginia VA DPOR # 0225 075803 703-485-1435