The statistics from MarketStats by ShowingTime confirms that buyer demand is high and home prices continue to go up in Northern Virginia. Even as mortgage interest stay around 6.5%, buyers are not discouraged. Here it the latest real estate market update April 2023.
Statistics and What it Means
Home values keep going up in Northern Virginia. The median sale price for a home in Northern Virginia is now $619,000, up from $585,000, last month. This is a 6% increase from the previous month and 0.7% increase from this time last year.
Inventory is extremely low but getting better. By the end of March 2023, there were 2,310 homes sold. This is a 35% increase from last month and a 33% decrease from last year. There were a lot more homes available for sale last year. This year, with less homes to choose from, buyers are once again competing to get their offers accepted. Homeowners are getting multiple offers and settling quickly.
The average number of days it takes for a home to go under contract is now 22, down 10 days from last month and up 10 days from last year. Again, due to less inventory and demand from buyers, homes are beginning to fly off the shelves again.
The median price per square foot per home is now $289, about the same from last month and down 2.4% from last year.
The total value of homes sold amounted to $ 1,658,003,739. This is up 44% from last month and down 30 from this time last year. This rounds up the numbers for the latest market update for April 2023 for Northern Virginia.
What Agents are Seeing
More and more agents are reporting multiple offers on homes in great condition, often going under contract in a few days. As interest rates have stabilized around 6.5 %, buyers don’t seem intimated and are out shopping. This may also be due to lenders offering programs that make monthly interest payments more manageable for buyers.
In general, buyer demand in Northern Virginia is still considered “Slow”. This is according to Bright MLS Home Demand Index. The Bright MLS | T3 Home Demand Index measures and tracks consumer and real estate professional behavior related to shopping for real estate by looking at metrics such as views of homes online and in-person showings. Ratings are categorized into 5 score points, from Limited (under 70 points) up to High demand (over 130).
The highest ranking areas in Northern Virginia are: HIGH DEMAND in Arlington (144) and Broad Run (143); MODERATE DEMAND in Alexandria (128); and STEADY DEMAND in Prince William (98) and Catlett (97).
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The month’s supply is now at 1.0, similar to last month’s measure of 1.2. This number shows how many months it will take to sell all the current homes now on the market. Most consider a balanced market, where buyers and sellers of homes are on the same playing field, to be about 3-6 months supply. It illustrates how low inventory is at this time. Many experts speculate that this will keep home value to remain steady in Northern Virginia in the coming months.
Mortgage Interest Rates
According to Nerd Wallet, the annual percentage rate on 30-year conventional mortgages is at 6.494. This is 25 basis points higher from the previous week and also up 138 basis points from last year. Many experts are hesitant to make predictions on how the rates will go from here. The main takeaway is that most experts agree rates will not return to 4% anytime soon and that rates are still relatively normal considering historic highs around 15%.
Advice to Sellers
Homeowners are enjoying a return to a seller’s market. Many homes are experiencing multiple offers, less time to go under contract, and with less inspections and contingencies. If life circumstances require you to sell soon, this is the time to reach out us to discuss ways to get your home “show ready” and get an idea of your home’s current value.
Advice to Buyers
Buyers who have realized that 6% interest rates out-weigh renting should not start the process before reaching out to expert real estate agents to prep you to get your offer accepted and success in real estate. The truth is that “timing the market” doesn’t work. Northern Virginia has a very strong real estate market. Home prices continue to go up year over year. Most buyers are using programs from their lenders to keep the monthly payments down. If rates ever drop, they can always refinance at that time. We remind you that according to the National Association of Realtors, “The net worth of a typical homeowner is about 40 times the net worth of a renter.”
Northern Virginia is still a great place to live and own a home. If you want to know more, reach out to us and let us work for you.
Questions/Concerns? Please contact us.
Also feel free to compare this update with last month’s Market Update – March 2023