The Spring Market is rolling along!
The Northern Virginia Market writ large continues its traditional spring ramp up irrespective of the shifting political and economic landscape. There were a strong 742 sales last week, a 10% increase from the 674 the week before. That represents a 2% increase from last year week over week. Looking at month over month figures we’re up 14%!
In more good news inventory rose to 2,739 homes, up 6% from last week and a strong 70% from the same week last year. This translates to a 1.2 months supply of homes for sale (and a .9 months supply of rentals, so that market remains just as tight). For some historical perspective during the 2007-2008 recession we had inventory levels as high as 23,000 and regularly saw levels in the 15K-16K range, so we still have a long way to go to get to a more balanced market.
Prices are up 8% year over year to an average of 850K, and homes continue to get multiple offers in many instances. There continue to me homes that are overpriced and/or in lousy condition that sit and have to take price reductions but market wide the last month homes sold for 100.1% of their list price. So if it’s a good home reasonably priced it’s time to act!
Looking ahead with some projections there are a couple of trends to bake into projections going forward. In 2021 and 2022 a lot of first time buyers had to make lightning quick decisions about home purchases and a recent survey found that as many as 1 in 3 first time buyers regret their purchase decisions. The good news is that they’ve built a lot of equity even if it’s only been 3 or 4 years so I project there will be some “regret listings” coming on the market soon as those owners move to homes that are better fits.
With all the media sensationalism and sky is falling reporting you’d think there would be a rush of distress sales. Nope! Like I have been saying for many, many months there is no bubble coming. This week there is only 1 short sale and 4 foreclosures in all of NOVA. So if you are ready to buy from a financial and lifestyle perspective call me and let’s get after it!
It’s a good life.
Chris
