Market Shift 2022
All the talk is about the market shifting. With inflation and the talk of recession, many buyers have stopped looking as more homeowners are putting their homes on the market. Real estate agents in Northern Virginia are feeling the change in tides. Here is the real estate market update August 2022.
What Agents are Seeing
As summer is coming to an end, there are less buyer demand and agents are noticing. There are less people attending open houses; there are less showings of homes for sale, and there is less interest overall. Homeowners are also experiencing a longer wait time for offers to come and fewer offers overall. Additionally, home buyers are negotiating more than usual to get better prices, home inspections and conveyances. These are changing times, indeed.
Statistics
Using data from MarketStats by Showing Time, the median sale price for a home in Northern Virginia is now $619,000, down from $640,000 at the end of June. This is a 3% decrease. It is a 5% increase, however, from the same time last year.
By the end of July 2022, there were 3,126 homes sold. This is 20% decrease from last month and whopping 30% decrease from last year.
The average number of days it took to sell a home is now at 14, up 4 days from last month and down 2 days compared to last year
The median price per square foot per home is now $312. This is up 2% from last year and up 7% from last month.
The total value of homes sold amounted to $2,222,457,026 This is down 24% from this time last year and down 20% from last month.
Month’s Supply
The month’s supply was 1.3; which is up from last month and last year this time. 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 3-6 months supply. This figure has gone up significantly and indicates we are heading to a more balanced market.
Mortgage Interest Rates
According to Nerd Wallet, mortgage interest rates on a 30 year conventional are at about 5.094%. This is as of August 11, 2022 and is actually down 2 basis points from last week.
Advice to Sellers
I’m advising my clients thinking of selling that inventory is still on the side of sellers but they should be prepared to wait a while before getting an offer and going under contract. It’s very important at this time to have their homes stand out among a growing inventory. This is where a good real estate agent comes in. Using marketing, staging, and pricing strategies is important as ever.
Advice to Buyers
I tell buyers that things are finally become more balanced and it’s time to look for their dream home. The market is such that they don’t have as much competition and can negotiation repairs and even prices in some cases.
Bottom Line
The market update for August 2022 shows that Northern Virginia has a stable and strong real estate market. Home prices are still rising year over year and there are more choices of cities and neighborhoods to choose from before the beginning of the school year.
Questions/Concerns? Please contact me.
Also feel free to compare this update with last month’s Market Update – June 2022