March 2023 Northern Virginia Market Update
Hold on tight, folks, because the Northern Virginia real estate market is like a roller coaster ride that's not for the faint of heart! In February we saw rates go from the high 5s to the high 6s in less than 10 days, and now they are just over 7%. In January buyers came out in full force, and guess what? They’re still getting into the market as we head into March and the spring market.
Unfortunately, the market's biggest adversary right now is low inventory. In the fourth week of February, only 180 homes were listed for sale, which is less than a third of the average over the last five years. And in the first week of March, only 251 homes were listed, compared to an average of 800 over the past five years.
We continue to see around 1,200 active homes for sale in the Northern Virginia market, which is 65% lower than in 2018 and 45% lower than in 2019. Buyers are eagerly flocking to open houses, with some properties receiving over 50 showings and as many as 10 offers in a single weekend! The limited supply has created a frenzy of demand and if more homes were available, I believe we would have more sales.
Despite interest rates creeping back up, buyers seem undeterred and are convinced that now is the time to buy. This belief, coupled with the lack of inventory, has created a classic economic equation of supply and demand, with low supply and high demand prices increase. It seems that in this seller's market, prices are unlikely to plummet any time soon.
In summary, don’t listen to reports in the media. If you want real information on the Northern Virginia real estate market, rely on me. As always, if you are looking to sell or buy, I can give you the right advice to make the best decisions.
With prices increasing, see how much equity you have in your home. Click the link below to get a free home valuation.