Jumping into 2024; Northern Virginia Luxury Real Estate Update

As January unfolds, we have to wait and see what happens with mortgage rates, and housing inventory as well as new construction. I love reading various opinions and reports about our market and wanted to give you a quick update on how things are moving along in Northern Virginia. 

Market Pulse- The Northern Virginia real estate market is still hot, with pent-up demand and not enough homes to go around. Buyers are being aggressive, with multiple offers and escalation clauses being the norm. The average price of a single-family home in Loudoun County is expected to crack $1 million in 2024.

Here are some key indicators of the current market:

• Home sales are up 15% year-over-year.
• Inventory is down 20% year-over-year.
• The median sales price is up 10% year-over-year.
• Days on market are down to 15 days.

These indicators show that the market is still very much a seller's market. Buyers are facing stiff competition and need to be prepared to act quickly if they want to win a bidding war.

Neighborhoods in Focus- Loudoun County is one of the most desirable places to live in Northern Virginia, and it's showing no signs of slowing down. Experts predict a 26% decline in single-family homes available and a 12% decline in sales in Loudoun County in 2024. The average price of a single-family home is expected to reach $1 million in Loudoun in 2024.

Here are some of the hottest neighborhoods in Loudoun County:

• Ashburn
• Sterling
• Leesburg
• Round Hill
• Middleburg

These neighborhoods are all popular with families and young professionals. They offer a variety of housing options, excellent schools, and convenient access to shopping, dining, and recreation.

Investment Wisdom- Mortgage rates are the biggest factor influencing buyers and sellers in Northern Virginia. The good news is that rates are still projected to go down for the early part of 2024. We are expected to see rates for a 30 year fixed rate, conventional loan to get to 5.5%. This would allow some sellers to move from their homes and will carve out a little affordability for buyers.

If you are thinking about buying a home in Northern Virginia, now is a great time. However, it is important to be prepared for a competitive market and to be willing to act quickly if you see a home you love. As January unfolds, we will have to wait and see what happens with mortgage rates, housing inventory, and new construction but it’s already shaping up to be a good year to buy or sell. Call Ariana Gillette today, 703-655-8415