Lawernce Yun, Chief Economist at National Association of REALTORS® states in his latest post in LinkedIn, "Homeowners are enjoying a record high in housing wealth. According to the Federal Reserve the household real estate valuation reached $44.8 trillion at the end of 2023. The total mortgage liability was $13.1 trillion".
"The household housing net worth therefore was $31.8 trillion. That’s a gain of near $2 trillion from a year ago and $20 trillion from a decade ago".
"Consumers have indicated some challenges of being a first-time buyer such as saving for down payment, understanding the home buying process and about all the paperwork. Thankfully, over 90% worked with a Realtor(r)".
Let's take a look at Loudoun County's Real Estate Market Update for March 2024 using February 2024 data:
Closed Sales for February 2024 are down 3.7% over February 2023 but up 18.9% since January 2024.
Average Sold Price for February 2024 is 2.8% higher than February 2023 but down .4% since January 2024.
Average days on the market is 18 days which is 43.8% lower than February 2023 and 28% lower than January 2024.
How does this resonate with you? Home prices remain stable with slight increments of growth. Despite a high demand from buyers, there's still a shortage of available inventory, mainly comprising new construction projects that have just commenced.
Are multiple offers being made? Absolutely. Multiple offers are becoming common, especially for homes that score a 9 or 10 in terms of maintenance and aesthetics. Sellers should focus on preparing their homes to maximize their returns on investment.
According to Curbio, Inc., a leading pay-at-closing home improvement solution for real estate, nearly half of sellers underestimate the need for updates before listing, despite reports indicating that buyers prefer move-in ready homes.
For sellers in Loudoun County, it's crucial to prepare your home for sale. We've transitioned from the COVID era where properties sold effortlessly; now, readiness and presentation are key factors in attracting buyers.
Closed sales for February 2024 and February 2023 are about the same. Is this are new norm? Again, we need more inventory of pre-existing homes to boost this number.
In conclusion, there remains a significant number of prospective buyers in Loudoun County, waiting on the sidelines. Sellers, it's crucial to ensure your home is meticulously prepared and poised for sale. Additionally, pricing your home at fair market value is essential. Two vital steps I always recommend are conducting a pre-inspection of your property and obtaining either a comparative market analysis or an appraisal before listing your home for sale.
Buyers, be prepared to present your strongest offer when entering negotiations on 10 out of 10 homes!