Home Prices in Northern Virginia Keep Going Up
Most agree that Northern Virginia is a beautiful place to live. The splendor of the four seasons is a favorite of nature lovers. It’s proximity to Washington DC makes it a prime location for those working in government. The area also boasts a technology-rich economy. According to Washington Business Journal, “Loudoun County alone has more than 25 million square feet of data centers in operation, with 4 million more square feet under construction, according to its Department of Economic Development. Prince William, Fauquier and Fairfax counties are making moves as well”. With all this going for it, Northern Virginia maintains its position as being sought-after for home owners. This month, the area saw a decrease in the number of homes available for sale. Still, buyer’s are out shopping and hoping to lock in low interest rates. It looks like the seller’s market will be with us through the holidays. What’s most notable? According to figures from Market Stats by Showing Time, home prices in Northern Virginia keep going up.
Here are the latest statistics using figures from the end of October, what agents are reporting, and what this all means to the bottom line.
Statistics
Sale Price/ Homes Sold
The average sale price for a home in Northern Virginia is $674,622. This is an 11% increase from the same time last year and 6% increase from the previous month. In October 2021, there were 3,603 homes sold which totaled $2,430,254,419 in sales volume. From the previous month, October had 4% less homes sold but only a 1.5% decrease in sales volume. This is great news for home owners, whose homes keep increasing in value.
Days on Market
Homes in Northern Virginia are also spending on average 19 days on market. This is up 1 day compared to last month and up 3 days from October 2020.
Average Price per Square Foot
On average, homes in Northern Virginia are selling for $294 per square foot. This is up 2 % from last month and 8% from last year. Again, this is a reflection of the home prices in Northern Virginia going up.
Number of Homes for Sale
There were 4,046 homes for sale. This is 15% less than last month and 18% less homes for sale from last year this time. Inventory is low. With buyers still looking, it means that Sellers have the advantage at this time.
Month’s Supply
Using figures from MarketStats by ShowingTime, month’s supply in October 2021 is at 0.97. This figure represents 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 3-6 months supply. This means that we are still in a seller’s market. Month’s supply in September 2021 was 1.27.
Mortgage Interest Rates
According to Freddie Mac, mortgage interest rates are on a steady rise, as was predicted. Still, rates are at historic lows and worthy of getting locked into. The average rate on a 30 year fixed conventional mortgage is at 3.1% which is 12 basis points more than last week and 38 basis points more than last year. The same holds true for 15 year fixed conventional, which is now at 2.39%. This is 12 basis points more than last week and 11 points more than last year.
What Agents are Seeing
It appears that while some agents are still experiencing multiple offers and over-asking prices, others are not experiencing having to wait longer to go under contract and less demand. The consensus is that location and condition of homes are major factors contributing to this difference. Still, the season favors the home owners and home values continue to rise. Buyers are still out looking and that is a good sign and a testament to low interest rates.
What Does This All Mean?
The data shows there are less and less homes on the market and home values in Northern Virginia are still on the rise. This is good news for home owners who can consider refinancing or selling their home a little earlier than anticipated. For buyers, the good news is that less people are looking which helps homes stay on the market a little longer and great interest rates are still low historically.
Bottom Line
Home prices in Northern Virginia keep going up. The area remains highly desirable as a place to invest in a home and expect continued appreciation in the long run.
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