Low Inventory and High Demand in the Northern Virginia Real Estate Market
Homes for sale in northern Virginia and all over the country have become a rare and endangered species in today’s housing market. We’re reaching the end of the pandemic, so people are eager to reenter the market whether they’re buying or selling homes.
Northern Virginia is experiencing one of the tightest housing markets ever with inventory at record lows. Homes that do go up for sale in this prized area of Virginia are snatched up within days. This isn’t just a product of the pandemic, although it factors into a lot of market apprehension.
Reasons for Low Inventory
Many sellers have refrained from putting their homes on the market out of fear of COVID-19 positive buyers touring their homes. Also, buyers have been wary about touring homes because of the risk of spread. However, the tight supply of homes was present long before the pandemic hit in 2020. Housing markets all over the United States were experiencing a lack of supply even in cities noted for falling rents and empty apartments.
Many data collection firms like Altos Research and National Association of Realtors (NAR) show record-shattering declines in housing inventory nationwide. In fact, the trends display a steady decline in inventory since the market crash of 2008. So, it’s been a slow and steady erosion.
Uncertainty in the pandemic job market has many people apprehensive about committing to a “forever home” because they feel their future is uncertain. Many elderly homeowners refrained from moving out of their longtime family homes and into an assisted living facility for obvious reasons. Historically low interest rates will continue to drive demand for homes in metro-areas and outside in the suburbs. Rural areas will gain more attention due to the transition from in-office jobs to remote work.
While record low interest rates are great news for home buyers, they can also incentivize homeowners not to sell their homes. They can stay where they are for a cheaper mortgage. Plus, low interest rates encourage homeowners to hold onto older homes and convert them into investment property rather than selling.
Great Schools, Low Unemployment
It shouldn’t be a surprise that northern Virginia is one of the most sought-after areas in the nation. Northern Virginia offers something for everyone like astute higher education institutions, gorgeous natural beauty, thriving job markets, and excellent schools. So many people want to call northern Virginia home, but lots of home buyers have grown discouraged in recent months at the tightening of the noVA real estate market. However, change may be on the horizon, and with the right real estate agent, you can find prime properties before others do.
The Place To Be
Some of the best cities in the United States are in the popular three counties of Fairfax, Loudoun, and Prince William.
You’ll find some of the top schools in Fairfax County in Arlington along with one of the best places to live near Washington, D.C. Many choose to live here and commute to their jobs in D.C.
Often listed as a “top city” to live in the USA, Falls Church ranks high for quality of life. The low unemployment rate along with its small town vibe make this a gem in the northern Virginia real estate market. Residents in Falls Church have a higher-than-average median income of about $120,000.
Another example of a popular location in Northern Virginia is the town of Chantilly, located along the Potomac River between North Virginia and Maryland. The unemployment rate is only 2.5% and the job market here is strong. It’s a town rich in culture and is ranked as one of the healthiest places to live in the United States (Sperling’s Best Places to Live in the U.S.).
These cities are just a taste of what Northern Virginia has to offer. Other locations that you may want to check out are Loudoun County, Prince William County, Fairfax, and Alexandria City.
Northern Virginia Statistics
In a nutshell, the Northern Virginia real estate market has high demand especially for detached homes. As a result of the pandemic, people want more space, so detached homes are in. The low inventory and high demand are the perfect recipe for a hot seller’s market. So, be prepared for high competition and higher prices.
Take a look at these numbers. They give you an idea of how tight the supply is in Fairfax, Loudoun, and Prince William counties. However, don’t be discouraged from the real estate market. This could still be an ideal time to buy as well as sell.
To take a deeper dive, check out these statistics from Bright MLS Statistics:
In Fairfax County, the median sold price is $560,000. That’s unchanged from this time last year. The number of new listings dropped a whopping 15.8% from February 2020. Closed sales are up 18.4% from February of last year. That shows a limited supply with demand increasing.
In Loudoun County, the average sales price is a bit higher at $580,050. That’s a 17.5% increase from last year’s $493,750. The days on the market are 14 days or less. New listings are down 11.5% from February 2020 while closed sales are up 32.5% from last year.
Prince William County
In Prince William County, the average sales price was $405,500 which is up 5.6% from this time last year ($384,000 in Feb.2020). New listings are down 11.1% from last year, but they are up 13 percent from a little over a month ago. As you can imagine, the closed sales are up 8.4% from last year and the average DOM (days on market) is only 9 days.
The spring real estate market will be in full swing in Northern Virginia, so get ready whether you’re a buyer or seller. The pandemic will eventually fade and even more people will gain confidence in the market. This will, in turn, result in more homes on the market and perhaps lower prices. However, don’t hold your breath on prices going down much this year. There are properties to be had in Northern Virginia. You just need to do your research and be ready when one pops up in MLS that fits your requirements. An experienced local realtor can help you find the best deals in the Northern Virginia real estate market. Give us a call today to discuss your search for a new home or selling your existing one.