What is low inventory doing to our local housing market?

What is low inventory doing to the local Northern Virginia housing market? How is the market?  I get  asked this question pretty much every time I tell someone I am a Realtor. Nationally we are at 40% fewer homes for sale than we were pre-pandemic. This is a huge decline in available homes and the effects of this housing drought are far reaching; agents, lenders, and buyers are really feeling the pinch! 

We can look at a few causes for the lack of inventory; decline in new construction and rates hitting rock bottom then skyrocketing back up causing sellers to back off and hold onto their low mortgages. Locally inventory is selling in under 30 days which means we are still in a tight sellers market and this is not expected to change anytime soon, even with grim reports of an economic downturn heading our way later this year. 

The Fed has thankfully ended ( at least temporarily) their rate hikes but has said that there will be more rate hikes planned for the future which is not what buyers want to hear. Right now mortgage rates are sitting around 6.9%. Mortgage applications are up right now for the month of June but overall are down 27% from this time last year. 

The upside for sellers is that home values are steady, and up 0.7% from last year making the average home price in our area $690,000. The demand for good homes is still strong in our area with many homes going above asking, getting multiple offers and going under contract very quickly. 

What does this mean for you if you are thinking of making a move in 2023? For buyers it means having patience, making sure your financing is strong and when you do find a home that you are able to move on it quickly and capture the best rate possible. 

For sellers it means putting some thought into the selling strategy and working with a Realtor who can guide you through a successful sale. The 3 most important factors when selling today are price, upgrades and presentation so make sure each of these is just right so you get your home sold. 

If you or someone you know needs real estate advice, is thinking of selling or jumping into the market please reach out. I would love to help.