Market Shift 2022
It’s hard to believe we are still in a Seller’s market. While inventory remains low, it is taking longer for homes to go under contract. And buyers, who got quiet as mortgage interest rates soared, seem to be back. Here is the real estate market update September 2022.
What Agents are Seeing
The shock of spiked mortgage interest rates have seen to worn off as buyers are now back out on the streets attending open houses and considering homes for sale. According to Bright MLS’s Home Demand Index (based on metrics such as requests for showings, online searches, and home prices), Northern Virginia’s areas have a “moderate” level of demand. In Loudoun County, Sterling and Ashburn have the highest demand with an index of 237 and 188 respectively. In Prince William County, Woodbridge (224), Dumfries (218), Manassas (218), Gainesville (163), and Bristow (159) have the highest scores.
Additionally, according to the Mortgage Banker’s Association, “The seasonally adjusted Purchase Index ticked up 0.2 percent, its first gain since late July. ” indicating that applications for loan applications trended increased slightly in the second week of September.
Buyers are requesting more in the negotiation process by not feeling pressed to buy a home right away. Still, with inventory still low, it remains a Sellers market. Additionally, homes in pristine condition in highly desirable areas are still getting multiple offers, go under contract in less time, and at an above asking price.
Using data from MarketStats by Showing Time, the median sale price for a home in Northern Virginia is now $595,000, down from $619,000 at the end of July. This is a 4% decrease. It is a 5% increase, however, from the same time last year.
By the end of August 2022, there were 3,064 homes sold. This is 2% decrease from last month and whopping 28% decrease from last year. This speaks to the lack of inventory of homes for sale.
The average number of days it took to sell a home is now at 18, up 4 days from last month and up 3 days from last year.
The median price per square foot per home is now $282. This is up 6% from last month and down 2% from last year.
The total value of homes sold amounted to $2,078,779,290. This is down 7% from last month and down 24% from last year.
The month’s supply was 1.22; which is about the same as last month’s figure of 1.32 up from last month and up from 0.93 from last year this time. 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.
Mortgage Interest Rates
According to Nerd Wallet, the annual percentage rate on 30-year conventional mortgages is at 6.104%. This is as of September 15, 2022 and is up about 19 basis points from last week. It’s also up dramatically from last month when the APR was at 5.228%.
Advice to Sellers
I’m advising my clients thinking of selling that inventory is still but it’s no time to take presenting and marketing their home lightly. Homes should be reasonably priced to attract wary Buyers; homes should be in great condition prior to going on the market; and considerable thought should be given to the presentation of the home to fetch a good price. On my (the real estate agent’s) side, excessive marketing using the latest technology and social media become paramount to find every available Buyer.
Advice to Buyers
If you are thinking of homeownership, this may be the time to find your next home. The home that meets all your needs may come on the market so keeping an eye out won’t hurt. This is surely a time to get your dream home at a fair price.
The market update for September 2022 shows that Northern Virginia remains a great place to own a home. Home prices are still rising year over year with no sign of stopping.
Questions/Concerns? Please contact me.
Also feel free to compare this update with last month’s Market Update – June 2022