How is the Northern Virginia Market?
Northern Virginia Market Update AUG 2023. This year has been so bonkers! We have seen rates steadily increase this year yet we have also seen home values rise. High mortgage rates are definitely having an effect on the Northern Virginia real estate market. The market has slowed down considerably, with fewer homes selling quickly, and contracts being accepted for asking price with seller paid closing costs or inspections included. This is due to the fact that buyers are now having to pay more interest on their mortgages, which makes it more expensive to buy a home. Currently rates just topped out at 7.09% As a result, some buyers are being priced out of the market, while others are taking a step back to see how the market will continue to develop. Overall, experts agree it is still better to buy now than wait! Unfortunately, high mortgage rates are also making it more difficult for sellers to get the escalated prices they want for their homes. As a result, some sellers are holding off on selling their homes, hoping that the market will improve. It is still a good time to sell. Sellers need to be realistic with pricing right now. If a home is priced properly, in a great location & is 100% turn key, chances are it will sell quickly even with the current market conditions. It is important to note that the Northern Virginia real estate market is still strong and up overall 3.6% from last year with an average home price around 700k! Many sellers are sitting on equity & that may drive the next wave of sellers. In addition, there is still a lot of demand for homes in our area because we are coming into an election year and we live in a very job driven, transient area. So, while the market has slowed down, it is not expected to crash. A matter of fact, 2024 real estate predictions show home prices increasing substantially once again. My advice is don’t worry ! Keep putting one foot in front of the other and if you want to move or buy something new go for it. Make sure you have your trusted Realtor by your side so that you can manage risk, have a plan for the future and help ensure you are making a wise real estate investment that will set you up for success for the future.
