Mortgage interest rates continue to rise and the cost of goods and services also increase. Many buyers have backed off from shopping for a home. There are several signs the housing market is slowing. Agents are reporting less showings, less offers and more days on the market. Compared to last year this time, 15% less homes sold. Still, the mean sale price is up 10% from last year. Here is the full run down and latest Real Estate Market Update for June 2022.
Homes that Sold
Using data from MarketStats by Showing Time, the median sale price for a home in Northern Virginia is now $660,000, up from $645,000 at the end of May. This is a 10% increase from the same time last year and a 2% increase from the previous month.
By the end of May 2022, there were 4,110 homes sold. This is 11% less than last year’s figure BUT a 13% increase from the previous month.
The average number of days it took to sell a home remained the same at 9 days. This is still 5 days yet from this time last year.
The median price per square foot per home is now $297. This is up 12% from last year and down 1% from last month.
The total value of homes sold amounted to $2,957,078,738. This is down 3% from this time last year and up 17 % from last month.
The month’s supply for April is 0.7. This is the same from the previous month. 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 as the Spring market is coming to an end.
Mortgage Interest Rates
According to Nerd Wallet, mortgage interest rates on a 30 year conventional are at about 5.878%. This is as of June 15, 2022 and is up from 5.6% reported last month.
What Agents are Seeing
As the Spring market comes to an end, the number of homes on the market appears to be slowly but steadily rising. Activity has waned in many areas. Agents say there seems to be less requests for showing and listing agents say they are receiving less offers. The trend is expected to continue.
According to Bright MLS’s Home Demand Index report for June, overall Northern Virginia and Washington DC metro remain with moderate demand from buyers. “This Home Demand Index (HDI) and accompanying economic research measures and tracks housing demand, home prices, and home buying activities by analyzing property data gathered from real estate agents, home sellers, and homebuyers involved in the viewing, showing, buying, and selling of homes,” according to Bright MLS. The top 5 counties in Northern Virginia with the highest demand are: Arlington, Alexandria, Prince William, Stafford, and Fairfax.
What Does This All Mean?
The data highlights the current lack of inventory, the rising home prices, and a gradual slowing of buyer demand. For now, it remains a sellers market and is projected to remain the same through the beginning of Summer. For now, Sellers still have the advantage while Buyers struggle with higher mortgage rates and rising prices.
The good news is that real estate in Northern Virginia on a whole remains a good investment.
Questions/Concerns? Please contact me.
Also feel free to compare this update with last month’s Market Update – May 2022