Are you wondering what is happening in the Northern Virginia real estate market and how low inventory is affecting home sales? 32% of Realtors® named a lack of inventory as the most important factor limiting potential clients from making a purchase, according to the National Association of Realtors®' 2023 Member Profile.
Jessica Lautz, NAR deputy chief economist and vice president of research states "Housing inventory and affordability continue to be the top obstacles that hold back potential clients in the housing market."
I am providing a market update for three counties which include Loudoun County, VA, Frederick County, VA and Jefferson County, WV. The information provided is based on June 2023 data from Bright MLS. If you are interested in seeing market metrics for your neighborhood or an estimate of your home's current value, I would be happy to provide this information via email. You can send me a request at sherry.santmyer@huntcountrysir.com.
In May 2023 the Frederick County real estate market saw many changes from June 2022 and even from May 2023. The following bullet points highlight the stats:
Closed Sales were down 9.9% from June 2022 and up 18.7% since May 2023.
Average Sold Price was up 7% over June 2022 and up 7.9% since May 2023.
Average Days on the Market was 26 days, this is 30% longer than June 2022 & 23.5% shorter than May 2023.
June 2023 Sales are below 2019, 2020, 2021 & 2022. The lowest June sales in the last 5 years but close to 2022.
In June 2023, Jefferson County's real estate market saw many changes from June 2022 and even from May 2023. The following bullet points highlight the stats:
Closed Sales were down 25.4% from June 2022 and up 15.8% since May 2023.
Average Sold Price was down .2% over the same time last year and down 5.5% since May 2023.
Average Days on the Market is 20 days, this is 11.1% longer than June 2022 & 25.9% shorter than May 2023.
Closed & Pending Sales are holding steady. 2019,2022 & 2023 is showing similar stats. There are a lot of new homes being built in Jefferson County, WV. I see this market continuing to grow due to affordability and approximate to Loudoun County, VA.
In June 2023 Loudoun County's real estate market saw many changes from the previous year and even the previous month. The following bullet points highlight the stats:
Closed Sales were down 23.5% from June 2022 and up 6.2% since May 2023.
Average Sold Price was down 1.5% over the same time last year and down 4.3% since May 2023.
Average days on the market is 14 days, this is 75% longer than June 2022 and 20% longer than May 2023.
Closed & Pending Sales are incredibly low! The lowest number in 5 consecutive years.
Real Estate Market Overview
The Jefferson County real estate market is staying stable.. New construction in Jefferson County is helping to boost sales. More subdivisions are slated to start in the next two years. I also believe that West Virginia is seeing a strong second home buyer's market. Families living in the DC/MD metropolitan want a vacation home that is not more than 3 hours away. West Virginia is convenient and Wild & Wonderful!
Loudoun County is seeing the lowest sales volume in the last 5 years. The average sold price is lower than last month and last year at the same time. I believe there are buyers wanting to buy but inventory is still low and home values are way to high for buyers to enter the market.
Frederick County homes are selling above last month and last years average sold price. Homes are staying on the market longer.
In conclusion, I think the lack of inventory is driving the market. As Lawrence Yun, NAR Chief Economist stated, "Low inflation means low mortgage rates. Therefore, decelerating consumer prices could steadily lift home sales and increase home production in a few months." It's time for the Feds to stop raising interest rates. We also need new homes to be built to increase inventory!
If you would like to see metrics for your local neighborhood, or have an estimate of your home's current value, please contact me at sherry.santmyer@huntcountrysir.com.
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