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NVAR Reports that Northern Virginia January Home Sales Down but Pending Home Sales Rose 14%
Good Signs that Sales Heading Up for Spring
FAIRFAX, Va. (February 15, 2023) – Northern Virginia home sales declined in January, dropping 33.6% compared to January 2022, but in a good sign, pending sales grew 14% from the month prior, reversing an eight-month skid, according to the Northern Virginia Association of Realtors® (NVAR).
“Pending home sales indicate an increase in market activity,” explained NVAR Board Member Peter Bixby, Compass Realty. “This growth is a positive sign. The buyers and sellers I work with are motivated and adjusting to higher mortgage rates.”
Despite lower sales activity, the average days on the market in January 2023 was 36 days, only up 2.9% compared to January 2022. Compared to the previous month, the average time on market was 12.5% higher. While inventory remains tight at .73 month’s supply in January 2023, it is up 88.4% compared to a year ago. Another positive sign was that there were considerably more active listings available in January of 2023 compared to January 2022, an increase of 41.5%. This suggests that while there are fewer sales in total, buyers have more housing choices and time to make decisions.
According to the National Association of Realtors®, approximately nine out of 10 metro markets registered home price gains in the fourth quarter of 2022 despite mortgage rates eclipsing 7%. Northern Virginia followed this trend to start 2023, as the median sold price continued to grow. The January 2023 median sold price rose 6.8% from January 2022, topping $610,000.
“While sales remained subdued, market activity typically increases with the springtime, and we expect this trend to continue in 2023,” explained NVAR CEO Ryan McLaughlin.
PRINCE WILLIAM COUNTY JANUARY 2023 MARKET STATISTICS
WOODBRIDGE, VA. February 24th – With the new year upon us, it’s time to take a look at new market statistics. Using data provided by Bright MLS, SmartCharts generates stats that give readers a valuable overview of the current housing market.
In January, 299 homes were sold, a noticeable decrease of 25.62% from December of 2022. The number of new listings decreased by 8.99% to 405 from 445 in December 2022. 342 active listings were listed in 2023 compared to
137 in 2022, a 149.64% increase. There was also an increase of 3.37% in the median sold price of homes to $474,999 from $459,500 last year. As a final note, the average number of days on the market increased from 18 in 2022 to 39 in 2023.
What to expect if you want to buy or sell a new home in Northern Virginia
If you’re thinking about buying a home in Northern Virginia, don’t expect a return to super-low interest rates any time soon, and prepare to see fewer listings overall.
On the other hand, prices are expected to moderate slightly, and you probably won’t have to battle 10 other buyers and make an offer on the spot. You may even have time to sleep on your decision.
High mortgage rates: New normal
If you’re planning to buy, be prepared: Higher mortgage rates are likely here to stay.
Nationally, the 30-year fixed rate swelled past 7% last month. more than four points higher than a year ago — before falling slightly. Higher mortgage rates eat into a buyer’s purchasing power.
Terry Clower, with the Center for Regional Analysis, said he expects rates to stay within the 6% to 6.75% range to finish out the year.
“We’re probably nowhere in the near future, going back to a 2 and 1/2% 15-year mortgage, or a 3.25% 30-year mortgage … and it’s going to take some time for people that are in the market to just get adjusted to that new reality,” Clower said.