The housing market is still marked by a lack of inventory. Homes that are reasonably priced and in good condition are going under contract within a few days leaving many buyers wanting more. Higher interest rates have not deterred most buyers. The good news is that more and more homes are coming on the market each day. The Spring market is definitely heating up. Here is Northern Virginia’s Real Estate Market Update for April 2022.
Homes that Sold
The median sale price for a home in Northern Virginia is $615,000. This is an 12% increase from the same time last year and a 7% increase from the previous month.
By the end of March 2022, there were 3,426 homes sold. This is 4% less than last year’s figure BUT a whopping 51% increase from February 2022 sales.
The average number of days it took to sell a home went up from 21 days to just 12 days in March. This is 7 days less from last year and 9 days less than last month.
The median price per square foot for homes is now $296 per square foot. This is up 10% from last year and 2% from last month. The cost of homes continue to rise.
The total value of homes sold amounted to $2,384,571,033. This is up 6% from this time last year and 61 % up from last month. So even though less homes were sold March 2022 compared to March 2021, the value of each home increased drastically.
The month’s supply for March is 0.54%. This is about the same as in February at 0.58. This number shows how many months it would 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 months supply. This figure is significantly low especially for a Spring market but there seems to be good news on the horizon as more homes are coming on the market each week.
Mortgage Interest Rates
According to Nerd Wallet, mortgage interest rates on a 30 year conventional are at about 5%. The Federal Reserve has said they expect to raise rates again this year. Some speculate that interest rates could go as high as 6% in 2022.
What Agents are Seeing
As we head full on into Spring, there are more and more homes on the market. Activity is picking up and homes in sought after locations and in great condition are going under contract in just a few days. This trend is expected to continue as long as inventory stays low.
What Does This All Mean?
The data highlights the current lack of inventory. There are 8% less listings compared to this time last year. It remains a sellers market and is projected to remain through Spring, at least. For now, Sellers still have the advantage while Buyers are finally seeing more options to choose from.
The Spring, it seems, is looking up in terms of inventory. While inventory is low, the market still favors the Sellers. The forecast is for more of the same through Spring 2022.
Questions/Concerns? Please contact me.
Also feel free to compare this update with last month’s Market Update – March 2022