Northern Virginia

September 2025 Market Update

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From Frenzy to Balance: What Today’s Market Means for You

As summer comes to a close, we’re beginning to see the real estate market shift out of the unpredictable patterns we’ve experienced these past few months. The market in Northern Virginia has felt like a roller coaster ride – sales climbing one week, dipping the next, and interest rates moving up and down just as quickly. That kind of volatility has left many buyers and sellers wondering what’s really going on.

The encouraging news is that we’re starting to move toward a more stable and balanced market. For a long time, especially during the pandemic, it was a strong seller’s market. Homes were selling in a matter of days, often with multiple offers well over asking price, and buyers had little room to negotiate. That environment made it challenging for buyers and created very high expectations for sellers.

Now, things are changing. While certain homes in sought-after neighborhoods may still attract multiple offers, most properties are staying on the market a little longer. This means buyers have more breathing room—they can take time to view homes, compare options, and even negotiate important protections (called contingencies) into their contracts. For sellers, it’s important to adjust expectations: instead of expecting instant offers, the new “normal” may be a few weeks on the market before the right buyer comes along.

This shift is part of a natural cycle. Real estate always ebbs and flows, and right now we’re moving away from the frantic pace of the past several years into something more balanced. That’s not bad news, it’s healthy. A balanced market gives both buyers and sellers a fair shot.

Looking ahead, interest rates remain a key factor. The Federal Reserve is expected to make another adjustment in September. Many are hopeful this could ease mortgage rates, making buying more affordable. However, it’s worth remembering that the last time the Fed moved rates in November, mortgage rates actually increased. In other words, there’s still uncertainty. We’re in a transition period, and patience is essential until the market settles into a new rhythm.

If you’re a buyer, now may be an opportunity. With more homes staying on the market and less competition, you may be able to negotiate better terms than in years past. If you’re a seller, pricing your home correctly and presenting it well is more important than ever—homes that are priced right and show well are still selling quickly. No matter where you are in your real estate journey – buying, selling, or just trying to make sense of the headlines, I’m here to walk you through it and help you make the best decisions for your situation here in Northern Virginia.

December 2024 Market Update

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And just like that, the holiday season is here! Another year is almost in the books — it’s amazing how quickly time flies. So, what’s happening now in the real estate market, and what might we expect in the months ahead? Let’s dive in.

Currently, the demand for housing remains strong. Even during Thanksgiving weekend, buyers were actively attending open houses and scheduling showings across the area. Interest rates have stabilized, and buyers seem to be adapting, even as prices remain at record highs. Why are prices climbing despite higher interest rates? It all comes down to inventory — or the lack of it. While lower inventory is typical during this time of year, we’re seeing even fewer homes available than in many recent years, excluding last year. This scarcity is putting upward pressure on prices.

Looking ahead, the real estate market will largely be shaped by interest rates and potential shifts in policy as we approach 2025. If rates decrease, demand could increase, driving prices higher and creating a more competitive market. Conversely, higher rates could lead to reduced demand, longer listing times, and potentially stable or lower prices. Adding to the mix, a new administration on the horizon brings the possibility of impactful policy changes. Historically, new leadership has often introduced initiatives to stimulate the housing market, such as programs to boost inventory, encourage homeownership, or make financing more accessible. While specifics remain uncertain, both interest rates and policy shifts will play key roles in shaping a potentially exciting and favorable environment for buyers and sellers alike.

On another note, you might wonder if now is a good time to sell your home. The answer depends on your situation. If you need to move soon, now is a great time. Buyer demand is high, and those looking during the holidays are typically serious buyers, not just browsers. Additionally, homes often look their best when decorated for the season, which can help make a strong impression. However, if you simply want to sell, waiting until after the holidays could be beneficial, as the buyer pool isn’t likely to disappear unless rates climb significantly. Either way, I’m happy to discuss your options and help you decide the best path forward.

As we wrap up the year, I wish you and your loved ones a joyful holiday season filled with warmth, laughter, and cherished memories. Happy Holidays! 

September 2024 Market Update

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As we step into the beginning of fall with cooler temperatures and apple-picking season in full swing, the Northern Virginia real estate market is also experiencing some noticeable changes. While mortgage rates have dipped by nearly 1% since June, this hasn’t yet brought a rush of eager buyers back into the market as we initially expected.

Instead, we’re noticing a trend: homes are staying on the market longer than they used to, and the flurry of multiple offers is becoming a thing of the past. Homes that once sparked bidding wars are now sitting on the market a bit longer, prompting sellers to reconsider their pricing strategies and expectations. To set the right price, it’s important to closely watch local trends — such as the number of competing properties, recent foot traffic, and how long homes are staying on the market.

One reason for the slower pace is the uncertainty around the upcoming election. As we enter an election year, many potential buyers are taking a “wait-and-see” approach. Economic policies proposed by key political figures, such as Vice President Kamala Harris’s suggested $25,000 credit for homebuyers, add another layer of complexity to the decision-making process. Additionally, there is some confusion around buyer agent compensation due to a recent commission lawsuit. Many buyers mistakenly think they need to cover down payments, closing costs, and their agent’s fees, which is rarely the case.

There’s also a belief that mortgage rates might drop further in the months ahead. If rates do continue on a downward trend, it might act as a double-edged sword. While lower rates could spur demand, they could also cause potential buyers to hesitate, hoping for even better rates. Waiting too long to buy, however, could mean facing higher prices if demand increases against our current low inventory.

For sellers, this evolving market means adjusting your strategy is key. With multiple contracts becoming less common, proper pricing, timing, staging, and marketing are essential to making your home stand out. Overpricing in this market can result in a longer time on the market and missed opportunities. If you’re thinking about selling, call me to learn how we’re helping our clients our sellers maximize their pricing and time on the market.   

While the market is showing signs of a slight slowdown, there are still opportunities for strategic sellers who stay informed and adaptable. The coming months will reveal more as we see how the election, the economy, employment trends, mortgage rates, and consumer confidence shape our real estate landscape.

Stay tuned for more updates, and enjoy the beginning of this beautiful fall season!

August 2024 Market Update

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As we enter August, the real estate market isn’t as hot as the weather we’ve been experiencing this year. Despite this, it remains a strong seller’s market, though the intensity has cooled slightly compared to earlier in the year. You may recall from previous newsletters that we saw sight-unseen offers significantly above the list price and multiple offers waiving all contingencies. While sight-unseen offers have become less common, we still see multiple offers, though it may now be only two or three rather than five to ten. Additionally, buyers are now able to negotiate contingencies, which I believe is a positive development.

With kids heading back to school soon, families might consider moves aligning with school district boundaries. This time of year often prompts discussions about relocating to be closer to schools or settling into a new area before the academic year kicks off. Whether you’re contemplating a move or thinking about selling, this seasonal transition can influence housing decisions for many families.

Looking ahead, there are several factors that might influence the market this August. First, Joe Biden’s withdrawal from the presidential race and Kamala Harris, now the Democratic nominee to run against Donald Trump could affect buyers’ decisions. We’ll have to watch how this impacts sales trends compared to previous years. Despite inflation dropping to 3%, Federal Reserve Chair Jerome Powell has opted not to lower the Fed rate, which could have future implications. There is speculation about a potential rate cut in September, followed by additional cuts in November and December. While this seems aggressive, we will see how it unfolds. Mortgage rates did decrease steadily in July, now standing in the high 6% range, but this didn’t result in a surge of sales, which was unexpected. It might be attributed to the seasonal slowdown we typically see in the summer months, especially now that we are past the pandemic period.

I will provide updates on August’s sales next month, so stay tuned for more information. Additionally, mid-August brings changes in how buyer agent compensation is advertised, which could impact sales, buyer representation, and seller decisions regarding compensating buyer agents. These are indeed interesting times, and I will keep you informed about these developments.

As always, I am here as a resource for you, whether you are considering selling or buying. Feel free to reach out to discuss your situation in more detail. Additionally, if you purchased a home in the last year, now might be a good time to refinance your loan! Contact me to discuss your interest rate options. Stay cool!

June 2022 Market Update

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Lately, we’ve been having conversations with each other, our clients, and others in the industry both locally and around the country to better understand what is happening today in the real world and the Northern Virginia real estate market. Lots of questions are being asked. Do we have a housing bubble in Northern Virginia? Are prices going to crash? When are prices coming down? Should I wait for prices to drop before I buy? Why is it taking longer to sell a house? How high will rates go? Should I sell (or buy) now or wait? 

In my opinion, prices will not be escalating at the rate they were previously. Those dramatic price increases were not sustainable. There may be pockets where prices decline, but we still have high demand at most price points.

Additionally, our price increases were not as drastic as in other parts of the country. According to the FHFA Top 100 Metropolitan Markets Ranking, we rank 99 out of 100! Other parts of the country will see higher price drops, but our area should remain stable. We will not have a “housing crash” in Northern Virginia. 

Don’t wait to buy real estate – buy real estate and wait. Buy because of your lifestyle, needs, and wants – and not strictly because of prices. Buy for the long term, not the short-term gains. Yes, the market has slowed down. Buyers are not “rushing” into buying decisions like they were previously, but remember – that type of market cannot be sustained. It is still a seller’s market. It’s a good thing when a house is on the market 7-10 days.  

If you are thinking of selling soon, give me a call. Rates are going up on 30-year fixed mortgages, but you do have alternatives – most notably, adjustable-rate mortgages and buydowns. The adjustable-rate mortgages are a great option and not what they were when the real estate market crashed in the past. Buydowns give you another option, with lower than 30-year fixed rates. Let’s discuss why these are often viable options for buyers. If you are looking to sell or buy – now is a great time, so call me to learn more.

Enjoy the last few days of Spring before the summer heat kicks in!

April 2022 Market Update

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How about this weather? Cold temps, blustery winds, snow, sleet, and sometimes sunshine and warm temperatures all on the same day. It’s so crazy; I can’t figure out what to wear today! These conditions remind me of the real estate market in Northern Virginia this last month. One house had 100 visitors and multiple contracts in two days; another had 15 visitors and one contract in four days – in the same neighborhood one week apart. We also have a house that has been on the market for more than two weeks with just a handful of showings and no ratified contract. As I always advise, you must have the house in pristine condition, priced right, and in a great location to get the most activity as well as contracts. If you think you can sell anything in this market, you are far from reality.

The real question of the month is, “when should I put my house on the market?” Interest rates have impacted the market as they continue to rise. We’ve had the most volatile few weeks of increases, with rates topping out at over 5%. This has some buyers looking to buy sooner rather than later (many believe rates will continue to rise), and they want to get in today. Another aspect to consider when I’m asked this question is the number of houses for sale – especially in your neighborhood. Overall, in Northern Virginia, inventory levels are down 29% from this same time last year – but inventory is rising. I also consider pricing when answering this question. Prices are up over 9% from last year, but with rising interest rates, inflation, and more homes for sale, price increases will not be as substantial as earlier this year. My answer is simple – get your house on the market sooner rather than later. Call me today if you are considering selling and want to see how this impacts you.

So how does all this impact buyers? If you are financially stable to buy a home, don’t wait – just go for it. Remember to buy for the right reasons – lifestyle, distance to work, and schools to name a few, just don’t forget what your why is. Don’t expect mortgage rates or home prices to come down because neither is going to happen for the foreseeable future. Waiting will cost you more. As the saying goes, ‘don’t wait to buy real estate; buy real estate and wait.’ If you are thinking about buying, call me, and we can discuss your situation in more detail.

In the meantime, have a great spring. Hopefully, the weather will begin to normalize soon!

June 2021 Market Update

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Here is the update on the crazy Northern Virginia real estate market…round and round and round it goes, where it stops, no one knows. The interesting thing is the market has shifted, and it happened quickly. Was it mortgage interest rates rising so high it stopped people from buying? No. Was it a flood of foreclosures and short sales hitting the market? No. Was it a pricing bubble that popped and collapsed home prices? No. Was it regular sales coming on the market giving buyers more choices? No.

So, what has caused the shift in the market?  First, the frenzied market we experienced from mid-January through early May could not be sustained. We were experiencing 50-70 showings in only one or two days and contract numbers in the high teens to low twenties on houses we put on the market.  Additionally, we saw prices escalate tens of thousands to hundreds of thousands above list price, with buyers waiving everything to “get” a home. It was a stressful time for everyone involved – buyers, sellers, and Realtors alike.

Now, we are seeing 5-15 showings in an entire weekend, and we are receiving between one and five offers. Still excellent numbers historically, but it is, in a different way, causing stress on sellers. The expectations of sellers are what they “heard,” “saw,” or “read” about the market two months ago or more – not recent facts. Well, the market shifts on a dime with no real rhyme or reason. The one thing I feel has put a damper on the market is “buyer fatigue.” Buyers had gone out, written contracts, and lost out on many houses. They wrote what they perceived to be the perfect contract and were beat out by someone who had to have the home and irrationally made an offer the seller couldn’t refuse. The conversations I am having now with buyers and agents are – oh, they have three offers? Someone will pay too much; I don’t want to waste my time. Therefore, we are now seeing fewer offers; still, great offers – above list price and waiving contingencies, but the number of contracts and showings are just down. So, if you are a seller or considering selling, your house will sell; just realize the market is different today, not bad, simply different. On the other hand, if you are a buyer, don’t give up; fewer people competing for homes mean you have a better shot at getting one now than a few short months ago. We can help you determine your best course of action, whether buying or selling, so call us to learn more!

Have a great summer!

April 2021 Market Update

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The Northern Virginia real estate market continues to amaze me. Inventory levels remain extremely low, demand remains extraordinarily high, and this is still occurring even though rates have increased slightly over the last few weeks. I do not believe this will change or slow down any time in the near future. The level of demand is just too high.

We continue to see multiple contract situations as the new normal throughout much of Northern Virginia. It is common to see all contingencies being removed and prices set way above the original list price in these situations. In early March, I wrote a contract on a house in North Arlington that was listed for $935,000. It was a 4-bedroom, 3-bath home, and just 1,280 square feet. The offer was cash, close in two weeks with no contingencies, and my buyer offered $1,026,000. According to the listing agent, we were not even close! One of the 23 received offers went up to $1,081,000. Insane! This leaves 22 other active buyers still looking to own in that price point in Arlington – so again, I don’t see this market slowing any time soon. All the being said, the condo market is the only anomaly as most condos are sitting on the market.

So, what is going to happen is what I am often asked. My belief is that inventory will remain low for the foreseeable future as people have purchased or refinanced at exceptionally low rates. As rates increase, there will be little, if any, motivation to move. If someone has a $500,000 mortgage with an interest rate of 2.75%, what will motivate them to move to a home with a $750,000 mortgage at 4% or even higher? I think this is what will stagnate inventory levels over the next few years. People will only move if there is a genuine need to do so – like marriage, kids, schools, job, divorce, death, etc.

Speaking about interest rates, they have inched above 3% for the first time in several months, but please keep this in mind, they are still below where they were this same time last year and are still below historical lows mortgages. Earlier I mentioned rates at 4% or higher; I don’t believe we will be there for some time, so no need to worry about this happening. I foresee we will be in the low to mid 3’s for the remainder of the year.

As always, I am more than happy to speak with you about your situation in more detail as each situation is unique and personal.

Happy Spring!

March 2021 Market Update

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It’s hard to believe that one year has passed since our world changed with the Pandemic. There have been so many changes in our daily routines, the way we interact with each other, how we conduct business, and so much more. The hardest part for many of us was that we lost loved ones or could not visit them due to restrictions. Let’s hope this all changes soon with the vaccine. 

As far as the real estate world goes, it has remained resilient and has even thrived. To some, it may be hard to believe, but true. Historically low-interest rates, crazy low inventory levels, and high demand resulted in a frenzied market over the last year. Housing gained over $3.1 Trillion in equity in 2020 as prices escalated in almost every market around the country. We are only a little over two months into 2021, and we continue to see a strong housing market. Inventory remains extremely low, rates have ticked up slightly but are still very attractive, and buyer demand remains very robust. The biggest concern remains the low inventory. We continue to see multiple offer situations in all price ranges throughout Northern Virginia. Many times, contracts are being submitted without the buyers even seeing the home! Crazy but true. Buyers are conducting pre-offer home inspections, waiving all contingencies, and are bidding 10-13% over the list price to get into a home. I believe we will be in this type of market for the next few years. Unfortunately for buyers, I don’t see a flood of houses coming on the market to cover the demand that is out there today.  Interest rates will remain low to help keep the market moving. We continue to have low unemployment relative to other parts of the country, so people are continuing to relocate to our area. Couple all of this with the Millennials entering the market as home buyers; it’s quite the tsunami.

If you are considering selling or buying a home, it is more critical today than ever to have a professional representing you. Expert negotiation skills and market knowledge are essential in this aggressive market. Please feel free to call me to review your situation in more detail or allow us to help someone you know. I am always happy to help.

I am looking forward to warmer weather and more hours of daylight, and I hope you are too.  Happy Spring!

February 2021 Market Update

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Again, I have said it before, and I will repeat it, inventory levels on homes for sale in Northern Virginia are critically low! We currently have just 1,701 homes for sale in all of the counties we serve in Northern Virginia. The amazing fact is the number of condos that are currently for sale – 792 – which represents just under 50% of the total inventory. Condos typically do not reflect nearly 50% of the inventory levels … more on this later. 

Continuing with the numbers; there are only 646 single family homes currently on the market. Are you kidding me? There are only 235 townhouses total, again, WOW! Do you know what this means? The chances of multiple contract situations are possible on virtually every home on the market. We have had as many as 30 contracts submitted on one house in Gainesville priced at $635,000. It escalated above $700,000. We had another home in Aldie that had 78 showings and 62 visitors at the open house. This one was priced at $772,000 that had 21 offers and escalated to $831,700. It is insane – I cannot think of another word to describe it. 

A question I am frequently asked is when will it end? I think it will be a long time, as I believe it will be rate driven, and rates will remain low for the foreseeable future. Once rates rise to the 4 or 5% range, we will see a slowdown in contracts/purchasers, but not an inventory increase. Another question is, when will buyer burnout take them out of the market? My answer: it depends as this is and has always been an individual question. I have heard about prospective buyers writing as many as 15 contracts (on different homes) and still in the fight, while others are not even entering the market because of these “bidding” war situations. Typically, buyers will write until they win a bid on a property.  Usually, in a market like this, it has been between 3-5 times in my experience. 

One more question I hear is how do I buy if I must sell my house first? This one is more complicated, but I can give you details if you are interested. We have nine ways to make this work!

If you or someone you know would like to discuss their situation with me in more detail, whether it is purchasing or selling a home, please feel free to call me.

Have a Happy Valentine’s Day!!