As mortgage rates continue to rise and active listings decrease, down 38% compared to February 2021, should buyers purchase sooner rather than later? Should Northern Virginians hold off on selling their current home or take advantage of this extraordinary seller's market?
Northern Virginia: Rising Home Prices
With the decline in listings, sales prices continue to rise. Northern Virginia’s February 2022 median sales price was $607,375, a 6.6% increase compared to February 2021.
High Sales Price and High Demand
Presently, the most significant challenges in the Northern Virginia market are high-priced homes paired with a lack of inventory. In addition, mortgage rates continue to rise. As of March 29, 2022, the average rate for a 30-year fixed mortgage was 4.86%. At the end of February 2022, the average rate on a 30-year fixed mortgage was 4.51%. This is the first time the average 30-year fixed mortgage has risen past 4% since mid-2019.
With incredibly high demand and low supply, we are still currently in a powerful seller’s market. Recently, sale prices have increased across Northern Virginia, except for Falls Church and Fairfax City.
Average Sale Prices for Northern Virginia Cities
Alexandria $649,365 up 5.7%
Falls Church $760,380 down 9.8%
Arlington $789,819 up 10.6%
Fairfax City $615,765 down 0.4%
Fairfax County $713,873 up 8.5%
Northern Virginia Buyers Continue to Face Challenges
The past few years have been quite a ride for the Northern Virginia real estate market.
With mortgage interest rates expected to continue their upward trend, a still-low Northern Virginia inventory, and significant increases in sales prices, we continue to see a very competitive market for buyers.
New listings increased from January 2022 to February 2022 with a 38.5% month-over-month increase, and buyers were snatching up available homes like hotcakes. February saw over half of the available Northern Virginia homes on the market for only ten days or less.
However, with mortgage rates and home values expected to continue increasing throughout 2022, if buyers are able, it would be smart to buy sooner rather than later.
Northern Virginia Residents Considering Selling
Despite no shortage of interested buyers, Northern Virginia’s low supply has ushered in a feeling of uncertainty for would-be sellers.
For people considering selling but with reservations about finding an available home, speak with a realtor about listing your property contingent upon finding your new house.
Contact Glass House Real Estate in Vienna and see how our accomplished agents can help you.
