The Spring Market is in Full Swing
The Nationals are cranking out the wins with hits, runs and great starting pitching. The Caps are losing games to the Penguins in the second round of the playoff series again and the Wizards are into the second round of the playoffs with John Wall leading the way…it has to be spring, right? Couple all of this with the smell of fresh cut grass, new
ly edged mulch beds, flowers blooming and of course, houses selling quickly – we know it is spring and PRIME home selling season.
We have a very dynamic and robust market in most of Northern Virginia! As you are reading this, the median days on market is 12 and the average days on market is 59. So, it is a very good market if you do the right things to sell as the median days on market bears this out. Houses are either selling quick or they are not. We are seeing properties priced below $450,000 receiving multiple showings and offers when they are in the right condition, price and are staged. Houses priced too aggressively for the market, are in poor condition and/or location are sitting with showings but no contracts. Buyers are out there, but they are still being very discerning when it comes to home selection.
Another indicator that the spring market is in full swing – prices are increasing. Over the last 5 years, we only had 4% appreciation across all of Northern Virginia. Year to date, we have 3% appreciation. This is good, but also poses a challenge as appraisals are becoming more of an issue – especially when multiple offers bid prices way up to “win” the contract. In some cases, the comparable sales are not available for appraisers to rely on to support value. As inventory continues to shrink, rates continue to stay low and buyers remain active; we may see more appraisal issues than not. Stay tuned for more information as we enter the summertime.
As is always the case, everyone’s situation is different and needs to be reviewed in detail, so if you are considering selling or buying, please feel free to call me for a no obligation consultation. We are here to help!
I mentioned in my previous market updates, we pretty much enjoyed a stable market for housing in 2015. I expect things to pick up in 2016 because of all the recent activity. Many of our agents have been working through the holidays with clients and I too have been meeting with both buyers and sellers looking to make moves in 2016 – more so than any other recent December. So buckle up, the market will be moving forward in a positive direction.
Along with the falling leaves and inventory, house sales are also falling – again, typical for this time of year. Many potential homebuyers take a break over the holiday in anticipation of the spring market.
The word this past month used to describe the real estate market would be stable.
On another note, we have a group of agents from different companies in our area that meet monthly. These agents are in the top 5% of agents across the entire country in regards to sales. We discuss the local market, inventory levels, buyer preferences, seller expectations, listing activity, and many other real estate related topics. In this Platinum Club group meeting this past month we discussed the fall market and what our expectations were about the upcoming season. The sentiment is the fall market will be a solid market in regards to sales. We were all optimistic about what the market is going to bring and seeing activity at our listings pick up this past week may be the start of the momentum our region needs. We will keep you posted.
Scott's Motivation and Real Estate Market Updates 