selling a home

August 2026 Market Update

Leave a comment

More Inventory, Slower Sales, and New Opportunities for Northern Virginia Buyers and Sellers

As we move into August, the Northern Virginia real estate market is experiencing a typical mid-summer slowdown. Many families are traveling, preparing to send children to college, or getting ready for an earlier-than-usual start to the school year. As a result, homes are taking a little longer to sell, and fewer buyers are writing contracts than we saw earlier in the summer.

Mortgage rates have also climbed to their highest levels in nearly a year, adding another layer of hesitation for some buyers. Although inflation has continued to improve and the Federal Reserve has not recently increased its benchmark interest rate, mortgage rates are influenced by several economic factors and can still move independently. Buyers and sellers are also closely watching global events, oil prices, and the possibility of future Federal Reserve action.

Northern Virginia currently has approximately a 2.2-month supply of homes, the highest level we have seen since October 2018. Inventory remains higher than it was last month, but the pace of sales has slowed, and the number of new contracts has declined over the past 30 days. This means buyers may have more choices and negotiating power, while sellers need to be especially thoughtful about pricing, presentation, and strategy.

For buyers, this shift can create meaningful opportunities that were not as available during the highly competitive market of recent years. With fewer multiple-offer situations and more time to evaluate properties, buyers can take a more measured approach to decision-making. However, well-priced and well-presented homes continue to attract strong interest, so preparation and responsiveness remain important.

For sellers, success in this environment often comes down to accurate pricing from the start and ensuring a home shows at its absolute best. Homes priced correctly for current conditions are still selling, but overpricing can lead to longer days on the market and eventual price reductions. As we move toward the fall market, we will be watching to see whether buyer activity picks back up. Even in a changing market, people still need to buy and sell homes. The key is understanding current conditions, setting realistic expectations, and working with an experienced real estate professional who can help you make the right decision.

June 2021 Market Update

Leave a comment

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!

March 2021 Market Update

1 Comment

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!

December 2020 Market Update

Leave a comment

As we close out 2020…

A lot has transpired since the last newsletter… a presidential election, Covid-19 outbreaks resulting in additional shutdowns, local jurisdictions reverting back to more restrictions on public gatherings, regional school districts canceling or staggering the return to the classroom, and of course, Thanksgiving. Luckily, we had great weather on Thanksgiving and could eat outside with our “at-risk” family members and maintain social distancing with them throughout the day.

Interest rates remain low on the real estate front; fewer people are re-engaging in forbearance on their mortgages, and houses are still selling – often with multiple offers. All in all, it’s a great market not only in Northern Virginia but around the country. 

As we enter the holiday season, inventory levels remain low, making it difficult for buyers looking to take advantage of great rates. We are only 9% below last year’s level of homes for sale during this same week in time. As I look back, this was the beginning of the inventory shortage in our area. It will be interesting to see if we match our low from this past January when we had just over 1,800 houses for sale. If you are considering relocating, downsizing, or upsizing, call me to see how we can help you get into a home. We have strategies for every market to help people become homeowners.

So, the question I am often asked this time of year is, should we sell our house or wait until the spring. My answer is – it depends. Do you need to sell, or do you want to sell? If you sell, where will you go? If you have to sell and have the next home secured or have living arrangements lined up, sell today. If you are looking to sell to take advantage of the market, we need to talk sooner rather than later. As I previously mentioned, rates are great, purchasers are out in the market looking to buy, we know what other houses are for sale right now versus the springtime, and we know what price we can get for it based upon recent sales. Also, in all likelihood, if the house is in great shape, is in an ideal location, and is priced right, it will sell quickly with little inconvenience to the seller. If you find yourself in this situation, please call me to discuss your situation in more detail.

Until next year, be safe, make wise decisions when going out in public so you remain healthy so you can celebrate the holidays with your loved ones.

March 2020 Market Update

Leave a comment

5

It’s March Already!

It seems like just yesterday that we started the new decade. You know the saying; time goes by faster when you are busy and boy have we been busy!

The real estate market continues to be very brisk. For example, I have scheduled appointments on a Thursday afternoon to show properties for the coming weekend. Several of the homes went under contract so quick resulting in canceled appointments (and sad clients). These houses were in various areas and various price points throughout Northern Virginia, not isolated in one area. In conversations with sellers, I have been letting them know that even though there are bidding wars, multiple contract situations, etc. the price and condition of the house still rule. If prices are too high for the area/neighborhood or if the home needs some work, it will sit on the market with little to no activity and definitely without offers! When priced well and in “HGTV condition”, there is a feeding frenzy. Buyers in today’s market, realistic or not, are looking for the perfect house and they are willing to pay for it. So, as a seller, get your house in top condition and price it right to get it sold and not be just “for sale”.

Lately, the news and social media have been inundated with information on the Coronavirus. The stock market has dropped over 4,000 points and this question is now coming up in conversation more often; “should I be concerned as a buyer or seller?” At this time, there are concerns but as I previously mentioned, we are still in a great area with sales at a feverish pace. My concern would be more for buyers and sellers in the luxury market. As part of their wealth may be invested in the stock market and as a result, there could be a concern but as we know, the market continuously ebbs and flows and this one is no different. There will be a cure for this killer virus, the stock market will rebound, and houses will continue to be bought and sold. Have no fear! If you would like to discuss this in more detail, feel free to call me.

As always, I am here to help you and your family and friends with their real estate needs. Happy Spring!

 

November 2019 Market Update

Leave a comment

Fall-Season-REMAX-700x360

Happy Fall!

The change in the weather has not changed the real estate market here in Northern Virginia. We still have a limited supply of houses for sale with lots of demand. Houses are selling quickly when priced right, are in the right condition and in a desirable location.  In all of Northern Virginia (Arlington, Fairfax, Loudoun, Prince William, and Fauquier Counties plus all of the cities in between – Alexandria, Fairfax, Falls Church, Manassas, etc.) the median days on market are just 14. As you can see, properties are selling quickly! The important thing to note however is prices are not drastically increasing with this supply and demand issue and when prices do get “pushed” we are having appraisal issues. It is important to price your house properly so if you are considering selling, please call me to discuss the right pricing strategy for you as each market is different.

During this time of year, people always ask, is now a good time to sell? My answer is – yes – if you need to sell. If there is a situation in your life that dictates the need to sell, list your house now. As I mentioned, we have a strong demand for houses. There is only a 1.5 month’s supply of housing right now. Also, we know that inventory levels are very low, only 3,855 resale houses are for sale today, so we know what the competition is for you. Who knows who will be selling in the spring and how this will affect pricing? We also know that rates, although they increased slightly this week, they are still great.  At this time, a buyer can get a 30-year fixed-rate at under 4% which is phenomenal.

Additionally, houses that are decorated for the holiday season often show better and, in some cases, give the buyer ideas on how they can enjoy the holidays in the house as well. A nice staging technique that can go a long way.  So, again, if you are thinking about selling and want to know if you should wait or list today, please call me.

I hope you have a festive Thanksgiving with your family and friends!

June Market Update

Leave a comment

The Summer Market is Upon Us!

It is hard to believe we are already through the Memorial Day holiday weekend. Time is really flying this year – at least it seems that way to me. Kids are home from college, summer jobs have started, weekend pool parties are in full swing and the real estate market is just as busy as it has been all year. Let’s start with the amazing mortgage interest rates that continue to tumble downward. They are now well into the threes for 30-year fixed rates and are expected to go down even further. This makes now a great time to buy a home! It can still be a challenge to find the right house, as inventory levels remain extremely low – 19% below last year this same week and nearly 30% below what was on the market two years ago. What is also amazing is that sales are up with inventory levels being down. Through April (latest available data point), there was one more sale this year than last year…one more is one more than before. I believe that interest rates will continue to foster sales through the summer as inventory will come on the market. Let’s talk about your plans if you are considering selling – we can position you properly to take advantage of today’s market.

All this being said, the market is not good to all sellers. The reason for this is some sellers are under the belief that their property will sell regardless of price and condition. We are seeing a lot of unrealistic prices on properties, as well as houses in disrepair or in need of substantial work to get the prices sellers are asking. We have seen average prices up over last year by 2.75% which is great, but it is not 2.75% per month like some sellers are pricing their houses at today (and “hoping” to get for them).

From a buyer’s prospective, we are still in a price conscience market. Buyer’s are concerned about paying too much and are analyzing prices closely, especially if they are using a professional REALTOR and not the internet to help them buy a house. The internet is not the way to buy a house today or anytime. The guidance and expertise of a real estate professional is more important today than ever before. If you are considering buying, we should talk sooner rather than later so give me a call.

Have a great June – enjoy the graduation parties!

Scott’s Market Minute 7/6/18

Leave a comment

Much like my desk today, the real estate market is a mess! Learn more about the advantage of being a buyer in the Northern Virginia market right now in my latest Market Minute message.

Would you like to talk about your current situation – looking or buy or sell?  Give me a call at 703-652-5777 or email me at scottmacdonald@remax.net

Scott’s Market Update

Leave a comment

It’s November and the housing inventory is dropping as quick as…. ???
Learn more in Scott’s latest Market Minute message. #marketminute#REMAX

Is it time for you to sell your home?  Maybe you are looking to buy, well now is a great time!  Give me a call at 703-652-5777 or email me at scottmacdonald@remax.net to talk about your situation.