With the global pandemic causing unprecedented changes in the way we live and work, the real estate industry has seen a significant shift in demand and supply. As a result, it’s more important than ever to stay up-to-date with the latest trends, insights, and predictions in the real estate market. In this blog, we will explore the current state of the real estate market, including the latest market trends, data, and analysis to help you make informed decisions. Whether you’re a homebuyer, seller, or real estate professional, this blog is packed with valuable information that will help you navigate the complex world of real estate. So, let’s dive in! And don’t forget to subscribe to receive regular updates on the real estate market.
Read on to learn what’s currently happening in the DMV real estate market!
The housing market continues to heat up this month. Homes are selling very quickly, though high prices and limited inventory continue to constrain sales activity. Last month, the Washington Metro experienced a –29.3% decline in closed sales year-over-year.
On the positive side, interest rates have more or less stabilized, granting buyers some security if they lose a few bids on the modest supply of available listings. And buyers are certainly ready and willing: the pace of pending sales continued to intensify this month, with most new listings going under contract in just 9 days. Many new listings are seeing multiple offers within the first week on market.
Are Prices Falling?
Throughout the DC Metro area, prices fell by -2% in comparison to last year. Prices in Northern Virginia continue to hold strong, however. Loudoun County saw a +5.9% increase in median sales price in comparison to this month last year. Fairfax and Arlington County were more restrained, with +0.3% and +0.7% increases in median sales price respectively.
What’s Keeping Prices So Strong?
The resilient prices here in Northern Virginia are a result of the ongoing shortage of available listings and the persistent buyer demand. On the one hand, the number of active listings in the DC Metro area has increased by 20% year-over-year. On the other hand, this inventory is very low when compared to historic levels – active listings are at 51% of what the market had to offer this month in 2019. Most major submarkets in our area are sitting on less than a month’s supply – a healthy market should have about 6 months. Low supply and strong demand will push prices higher.
What’s In Store for Interest Rates?
Interest rates have shifted back upward by modest degrees over the past 2 weeks, but signs point to a gentle decline in rates over the horizon. Data suggests that the housing market is stabilizing from a sales and home price perspective. As always, competition in the DC Metro is highly dependent on hyperlocal markets, but as the market calms throughout the US in general, we will see an ease in rates.
Overall, the housing market still heavily favors sellers, though some local markets are performing stronger than others.