Crazy Weather, Crazy Market…
The Northern Virginia real estate market has been a lot like our weather in March… hot and cold. We’ve had some markets that have been on fire – Reston as an example; while others have been normal which makes Realtors and sellers feel on edge or think that the market is “cold”. It is extremely important to have the right expectation when selling your house – not every house sells in a day with multiple contracts. Many houses take a couple of months to sell. The current average is 65 days on the market in Northern Virginia. This is below the national average so we still have a great market. Buyers are buying and as result, the supply of existing houses for sale is down to a 1.2 month supply of homes. So, my advice is to be realistic if you are going to be selling your house and if you get a contract quickly, make the most of it, but depending on the local market or even the neighborhood don’t expect the process to happen ultra fast.
Again, the good news is that sales are up 6% over last year, sales prices are up 2.8%, mortgage interest rates are still phenomenal and the inventory levels are increasing – so we should continue to see a good spring market. Even with inventory levels increasing, we are still 19% below last year’s levels. My belief is this will continue to happen for the next few months – inventory will rise but we will still lag behind previous years because we have strong fundamentals in place for a good housing market.
Consumer confidence continues to surge to epic highs, hitting a 16 year (you read that right) high in March demonstrating that economically, Americans are upbeat about present and future conditions. If rates continue to ease upwards driven primarily by pushes by the Fed expect adjustable rate products to become more popular though the situation where those make sense is still relatively narrow in my mind.
We can discuss your plans in more detail to see if this is a viable option for you. Please let me know if you have any specific questions or concerns as I am here to help! Happy Spring Break and Easter!