This month’s real estate market update March 2024 in Northern Virginia is all about the Spring Market. Home prices are up 4% from the previous month; closed home sales are up 27%, and home inventory is up 14%. The year is off to a great start. Mortgage interest rates have stayed between 6.5% to 7% for the last 2 months. Additionally, it seems to be holding steady. The latest Consumer Price Index (CPI) report also shows that the inflation rate is now 3.2,%, which is 0.1% more than the previous month. This all weaves together for a bright future for real estate. Here is what it all means for the Northern Virginia real estate market update for March 2024.
Statistics and What it Means
Using statistics from MarketStats by ShowingTime, we looked at 10 counties in Northern Virginia – Alexandria, Arlington, Fairfax, Falls Church, Fauquier, Loudoun, Manassas City, Manassas Park City, and Prince William. Here are the highlights for Northern Virginia.
The median sale price for a home in Northern Virginia is now $640,000, which is up 4 % from the previous month and up 9% from this time last year.
At the end of January 2024, there were 1,721 homes sold in Northern Virginia. This is up 27% from the previous month and up 0.8 % from last year. This shows the increase in sale activity as the Spring market begins.
The number of Days on Market for Northern Virginia is now 23 days, this is 6 days less than last month and 9 days less from this time last year.
This month, there are 1,986 homes for sale. Additionally homes sold at 100.5% of the original asking price. In general, home owners are getting more for their homes than what they set as the sale price.
Inventory Levels
The phrase “Month’s Supply” refers to how many months it will take to sell all the homes currently on the market. Most consider a balanced market, where buyers and sellers are on the same playing field, to be about 3-6 months supply. Currently, Northern Virginia has a month’s supply of homes for sale of 1.5; this is up from 1:3 from last month.
Bright MLS Buyer Demand Index
According to Bright MLS Home Demand Index, buyer demand in the Washington Metro Area (which includes Northern Virginia) remains “Limited”. The Bright MLS | T3 Home Demand Index measures and tracks consumer and real estate professional behavior related to shopping for real estate. They look at metrics such as the number of views of homes online and in-person showings. Ratings are categorized into 5 score points: Limited (under 70 points), Slow (70-89), Steady (90-109), Moderate (110-129), and High demand (over 130).
This month, buyer demand is SLOW across most areas and may be due to the winter season. Here are the top 5 in Northern Virginia: MODERATE in Arlington (126) and Alexandria City (119); SLOW in Prince William (86), Manassas City (84), and Stafford (76). Loudoun County’s buyer demand is LIMITED at (59).
What to Expect in the Coming Month
As anticipated, the Spring market in Northern Virginia is becoming more active. Inflation has remained around 3% for a few months now and appears to be the new normal. With this, mortgage interest rates are also staying between 6.5% and 7%. The Market Update March 2024 shows strong home prices and improving inventory as more homes come on the market for sale in time for the Spring market.
Advice to Sellers
For homeowners in Northern Virginia, accurate pricing and good condition remain crucial ingredients to ensure a smooth and successful sale. If done properly, expect to get your asking price and go under under contract in about 3 weeks. Real estate agents are still reporting multiple offers as the Spring Market begins.
Advice to Buyers
Lower interest rates mean higher buying power and more affordability. If you were thinking to buying, this is the time to prepare by checking credit score and evaluating savings needed for closing.
Bottom Line
The market update for March 2024 shows a more vibrant real estate market.
Questions/Concerns? Please contact us.
