April 2023 Northern Virginia Housing Market Update
Spring has sprung - green dust on cars, watery eyes, and an increased budget for tissue over the next 5 weeks is happening all over Northern VA. March Madness is behind us and we are in full swing with our 6-7 month baseball season, but at least the new MLB rules make games on average under 3 hours! If only they could do this for tee ball!
Let's look at a few key points from March 2023. They are:
- Days of Market
As I suspected from the increased showings, offer deadlines and the mortgage rates' downward trend, sold prices did increase.
According to Northern Virginia Association of Realtors, the median sold price of single family homes in March was 900K. As a reminder, it was 825K in February.
Why the big jump? Let’s take a look at the interest rate roller coaster starting at the highest in late October and early November 2022 and the fairly quick drop through January and early February. This was when most sellers for March closings had contracts on their home. The lower rate encouraged more buyers to enter the low inventory market, creating multiple offers on the properties. This was the main reason why home prices increased.
#2 Inventory: Inventory levels are low. However, it’s starting to improve, but not enough to keep up with the demand.
Let’s look at inventory levels for single-family homes over the past 10 years. In April 2013, we had 2.2 months of inventory, by summer of 2014 we were at our highest of about 4.2 months and then the decline started to where we are today at 1.14 months of supply. This means it would take about 34 days for all of the homes to be purchased if no other homes came up for sale.
#3 Median Days on Market
- January:34 days
- February: 12 days
- March: 6 days
6 days is really a weekend on the market. The property goes active on the MLS on a Thursday and a contract is ratified by the following Tuesday. The buyer behavior has changed. Let's talk about the right repairs or improvements you need to make on your property in this higher interest rate environment.
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HOME is more than a place with a roof over your head. It is a place of comfort, love, warmth, rest and security – “HEARTH”. We want to help you reach that place. Hence, our mission at The Royster Hearth Group is simple – Serve Our Neighbors, Not Ourselves. We work hard to serve you in every aspect of the home-selling and -buying process.