The Northern Virginia Housing Market Update

Northern Virginia Homebuyers Find Relief

Home sales remain active, while inventory is still low across Northern Virginia. However, it looks as though the Northern Virginia housing market is starting to balance out.

Derrick Swakk, president of the Northern Virginia Association of Realtors (NVAR), reported, “(What) we experienced for September was more of a reversion to the mean, resembling a more typical fall market like we had in 2019 or 2018, rather than the outlier of 2020.”

Source: pexels.com

What This Means for Northern Virginia Homebuyers

According to the latest report by NVAR, the Northern Virginia housing market was less competitive in September compared to September of 2020. 

The number of houses sold in Northern Virginia was down 5%, while active listings increased 15%. The average number of days on the Northern Virginia market rose 10% to 21 days. However, hot homes are still typically selling within days. In addition, The median sales prices saw a decrease of less than 1%. In September, properties in Northern Virginia sold for 99% of the list price.

Source: zillow.com

Arlington County saw a decrease in the median selling price of homes, falling 9% compared to September 2020. The average sale price in Arlington for September of 2021 was $725,000, which was a 12% dip compared with last September. Homes in Arlington sold for 97.8% of the original listing price - showing a 2% fall from this time last year. However, the number of active listings climbed by nearly 8% and pending sales contracts rose 14% year-over-year this September. This reflects vigorous contract activity, especially for single-family homes - showing the market may be trending toward the buyers' benefit.

Sales activity for Arlington and Fairfax counties saw a 4.9% decrease in homes sold year-over-year this September. Home listings in Arlington and Fairfax Counties increased 15%.

The NVAR reported a considerable dip in frenzy buying, which we have experienced over the last 18 months, reflecting a healthy market for buyers and sellers.

Mortgage Rates

At the end of October, the average 30-year fixed mortgage rate climbed to 3.22%, one basis point from the middle of October. The 15-year fixed mortgage rate increased two basis points from the middle of October to 2.45%. 

Source: foxbusinessnews.com

Interest rates are gradually increasing, and experts believe rates will most likely continue to climb. The November 3rd Federal Reserve meeting should give the public more information on the future of interest rates. The Federal Open Market Committee has stated there is a “significant probability” it will begin gradually reducing its mortgage rates starting in November, which is why mortgage rates began driving up in October.  

The Perfect Time for Northern Virginia Homebuyers

With less competition in the Northern Virginia housing market and interest rates still low but forecast to rise - homebuyers considering purchasing a home may want to lock in their rate now.