The real estate market in Northern Virginia appears to be taking a quick breath so far in September. Through the first eight months of the year we were on a whirlwind tour with multiple offers, few days on the market and escalating sales prices, but as the summertime came to a close and with the Labor Day holiday and kids going back to school we have seen a slight slowdown in the market.
The inventory of resale homes available remains low at just over 5,400 which is down 25% from the same time last year. In addition, sales of existing properties are up the last 30 days by 4% over the same period last year. But the number of houses on the market is up from the previous week and the number of weekly sales the last four weeks has declined each week. And prices are down slightly from June to July – August prices are not yet released. As we look at these numbers, again, my belief is it is August, one of the historically slow months for real estate. People go on vacation, families are gearing up for their kids to go back to school, it is the end of summer, and people are getting back into routines in their lives.
As we look back, in a National report by Corelogic, the July Home Price Index (HPI) showed home prices-including distressed sales-increased year-over-year by 3.8 percent in July. On a month-over-month basis, prices increased 1.3 percent from June and July marked the fifth consecutive increase in home prices on both a monthly and yearly basis. In Northern Virginia, we are tracking very close to the year of year stats with a 3.2% increase over last year. Interest rates remain extremely low on all loan products for housing which is good for sellers, more buyers can qualify to buy – buyers, payments are lower and home owners looking to refinance to stay in their homes also have the opportunity to lower their payments.
All in all, we are experiencing a great real estate market in Northern Virginia and we should continue on this path of recovery. The only issues that potentially could impact the local market is sequestration and Dodd-Frank reform so we will keep on top of these fronts for you and report back as we know more. If you ever have any questions, always feel free to call us – we are here to help you.