The real estate market in Northern Virginia remains in favor of the sellers. Still, there are signs that the market is softening. Here is your Real Estate Market Update for Northern Virginia for August 2021.
Using figures from MarketStats by ShowingTime, month’s supply in July 2021 is at 0.82, which translates to less than a month’s inventory. A balanced inventory/markets is usually considered to be 3-6 months supply. Still, the market is softening.
Northern Virginia’s sales volume is down 15% from last month and 8.7% higher than sales volume of one year ago. Using figures from July 2021, average sales price for the region is $662,192, down 3% from last month and up 7% from last year.
It makes sense considering the number of showings dramatically decreased in July along with realtors’ observation of less showings and less buyer’s interests. Demand from buyers fell 17% in July in the area since last month and 13% from July 2020.
Homes in Northern Virginia are spending on average 12 days on market. This is 7% more time than last month but 3% less time compared to last year.
Agents are reporting that August was not as busy as previous months. Showings are down though there are plenty of homes for sale. Contributing factors are assumed to be the increased number of Delta variant cases in Virginia, summer vacations, and buyers being tired of being turned down and priced out the market. The new school year just beginning may also be a contributing factor. Some predict the market will pick up momentum and buyers will start shopping again in September. Others are not so sure and only time will tell.
What I notice is more “normal” buying patterns, not the frenzied stress inducing times of last year. Because of this, sellers are negotiating more with buyers, especially if the home has not received multiple offers.
Still, with less traffic there is still a robust market for sellers to take advantage of. Homes are being sold on average higher than asking price in most counties of Northern Virginia. Additionally, the interest rates are exceptionally good and buyers may decide to get back in the game. Last week, two of my clients got exceptionally good rates. One refinanced with a 15 year conventional loan and got a 2.12% rate. Another first-time homebuyer locked in a 2.375% rate on a VA 30 year fixed loan without buying any points. He is considering buying points which will bring this down even further.
The real estate market update for Northern Virginia is positive. The market seems to be evolving and everyone is keeping a close watch. Sellers are still at a major advantage as the number of homes available to purchase is still down. New construction homes are providing some relief. Still, it will be hard for buyers to not want to take advantage of these historically low interest rates. This may be enough to get the number of showings up again soon.
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