The real estate market in Northern Virginia is showing signs of improvement, according to recent data from the Northern Virginia Association of Realtors (NVAR). While home sales in August were down 12.4% compared to the previous year, this was a smaller decrease compared to the drop of 20% seen in July.
The NVAR CEO, Ryan McLaughlin, expressed optimism about the market’s resilience, stating, “The bounce back reflects the resilience of our marketplace.” However, finding a home to buy remained challenging in August due to limited options and higher prices. NVAR board member Stacy Holscher of Redfin Corp emphasized the importance of being prepared as a homebuyer in order to make quick and appropriate decisions.
One factor contributing to the tight supply of homes is the higher mortgage rates, which have sidelined some potential buyers. As a result, there was only a 1.08 month’s supply of inventory in August, down 1.4% from August 2022. Additionally, homes stayed on the market for an average of 17 days in August, two days less than the previous year.
The limited supply of homes has resulted in higher prices. The median home sales price in August jumped 11.6% over the previous year, reaching $700,000. This marked an increase from July when prices rose to $691,000.
The NVAR data covers home sales in Fairfax and Arlington counties, the cities of Alexandria, Fairfax, and Falls Church, as well as the towns of Vienna, Herndon, and Clifton. In August 2023, there were 1,535 closed sales, down 12.4% from the previous year. However, the total sold volume increased by 0.6% to reach $1.27 billion. The average sold price also saw a significant increase of 15.8%, reaching $831,968. There were 1,492 active listings in August, representing a 30.7% decrease compared to the previous year. Additionally, new pending sales were down 16.7% at 1,304.
The data further provides an overview of home sales by jurisdiction in August. The NVAR has also included a visual representation of the data, showing a comparison between August 2023 and August 2022.
Overall, the real estate market in Northern Virginia has shown signs of improvement, with a smaller decrease in home sales compared to previous months. However, the limited supply of homes and higher prices continue to pose challenges for homebuyers. It is important for potential buyers to be prepared and make informed decisions in this competitive market.