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.
ory level of homes for sale. As many of you know, I have been tracking active inventory of resale homes since the first week of March 2005. At first it was monthly, now it is weekly as the market can be very dynamic. The reason I initially started this tracking routine back in March 2005 is because I had heard there were 148 contracts on a house in Arlington. We all thought there was little inventory available, so I ran numbers for Arlington, Fairfax, Loudoun, Prince William and Fauquier Counties, in addition to all the cities within those counties. My analysis concluded that there were only 1,652 houses for sale. With the high demand and unrestricted lending guidelines back in 2005, it is no wonder that we would see so many contracts on ONE individual property. What is even more interesting is by July 2005 there were 7,705 houses listed for sale – truly a rapid ascent, but what is really crazy is that number soared to 22,898 in November 2006. As we all recall, the market crashed in 2007.
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