Agents are saying that they are seeing a change in the market. They are receiving less offers on the homes for sale; there are less appointments; and there are more contingencies in the sales contracts. Is the real estate market cooling off in Northern Virginia?
This video looks at what the agents are reporting and some statistics to present the market update for June 2021. Note we are using sales figures from May from the Northern Virginia Association of Realtors and Bright MLS.
WHAT AGENTS ARE SAYING
Agents are saying that they are making less appointments to show buyers homes. Agents selling homes are saying they are receiving less offers and ratifying on offers below asking price. Because of this, some say the real estate market is cooling off.
PERSONAL EXPERIENCE
Personally, I work in many counties in Northern Virginia, including Loudoun County, Prince William County, and Fauquier County. I believe this may be hyper local or dependent on the type of home that is for sale. Homes that are new and move-in ready are still commanding attention, multiple offers, and going for over the asking price. Some areas are also more popular than others.
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STATISTICS
In terms of statistics, there has been an increase in month’s supply going from 0.74 in March to 0.82 in May indicating more supply of homes available. Bright MLS also noted that the Home Demand Index has fallen 7% from last month indicating less buyers looking for homes. Still it is much too early to come to a definite conclusion but it is noteworthy. It’s even more interesting that we are hearing this from agents in the field on a daily basis. I believe agents will be the first to notice a shift from a seller’s market to a more balanced market rather than the real estate market cooling off.
BOTTOM LINE:
It remains a seller’s market … for now. Mortgage rates are also still low which means there is still time for buyers to take advantage and those interested in sellers to also benefit.
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