First and foremost, I trust you are staying safe and making wise decisions when going out in public, so you remain healthy!
So, you may be wondering what was happening in the real estate business during the pandemic while we were on stay at home status. As I mentioned previously, we were deemed essential, so we could still “work” and help people make wise decisions when selling, buying, or leasing properties. And let me tell you, this pandemic did not stop our local real estate market, as houses are selling and selling fast in many cases. The median days on market in Northern Virginia in March were six; in April, it was five, and I am guessing that we will have the same result in May. The average days on market stand at just 28 days. We still have an extremely low inventory level today, and we have a tremendous number of buyers out in the marketplace resulting in a feeding frenzy in many price points and in most locations throughout Northern Virginia. Today, the number of homes for sale is 40% below this same time last year and is down 51% from two years ago. We currently have less than one month’s supply of homes, which is historically low. The bottom line is – we need more houses to sell to keep up with the demand.
Mortgage interest rates are incredibly low – around 3.25% today. The great rates are one contributing factor to home sales as it is more affordable (on a monthly basis) to own versus renting in many cases. The rental market remains on fire as well as demand is strong for rentals. Additionally, prices are increasing across the region, and buyers want to begin their wealth-building strategy of homeownership. One interesting dynamic that we are seeing is more first-time buyers entering the market and fewer investors/cash transactions.
It is still a great time to both buy and sell if you take the proper precautions. Give me a call me to discuss your situation in more detail, especially now that we are entering Phase 1. The big question to be answered by the next newsletter is… Did more people decide to sell now that we are in Phase 1 or potentially Phase 2? Lastly, if you went into forbearance on your mortgage or other debts or if you are thinking about it, please call me so I can explain the process and ramifications.