This summer has been described as “crazy” for everything from weather to the real estate market. According to the latest figures published by the Northern Virginia Realtors Association, the numbers show that it continues to be a seller’s market. Still, there are changes suggesting a definite shift in the market. Here is the latest news in Northern Virginia Real Estate.
Whether you’re thinking of buying or selling a home, it’s always good to keep an eye on what is happening. This includes current trends in home selling, mortgage interest rates, and in the economy.
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Statistics show that there are still much less inventory to meet the demands of buyers with month’s supply in June 2020 at 0.85 months. Most agree that a healthy month’s supply is between 3-5 months supply, this is how long it will take to sell a home.
Other figures show that the average sale price continues to rise, with a 14.5% increase from June 2020. There are also more listings on the market this year compared to last. The number of homes sold has increased by 48% and the days on market has gone down by 27%. Additionally, 73% of all home financing is coming from conventional loans followed by VA loans at 12% and cash buyers at 11%.
When compared to last month’s figures, it shows that there were more homes up for sale as compared to May 2021 and the total number of homes also increased y 12%. These figures support what realtors have been experiencing. There are reports of less showings, less contracts and it taking longer to get homes under contract. There appears to be a slight shift in the market and this is a major part of the latest news in northern Virginia real estate.
WHAT DOES THIS ALL MEAN?
This downturn in buyers showing up may be the result of summer vacations and the notorious “revenge travel” that people are having after a long spell in quarantine. This leaves an opportunity for buyers till on the hunt and wanting to take advantage of the still low interest rates. For sellers, it means there may be the need to allow that home inspection and possibly not get a free “rent-back” on your home.
Some other factors to keep in mind include rising interest rates which means buyers will not longer want to get a mortgage at a higher rate or they will not longer be qualified for a mortgage. These will definitely impact the market over the coming months.
It is still a seller’s market but there seems to be more wiggle room for buyers to get what they have been looking for. Also read up on whether the market is actually cooling.
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