Rising Interest Rates Impact Northern Virginia Housing Market
Anonymous
Monday, November 6, 2023
Rising Interest Rates Impact Northern Virginia Housing Market
The Northern Virginia home market is one of the most desirable and costly in the country, but rising mortgage rates are causing problems. In September 2023, home sales in Northern Virginia fell more than nationwide, while prices rose more regionally, according to the Northern Virginia Association of Realtors (NVAR).
Northern Virginia house sales fell 18.2% in September, compared to 15.4% nationally, according to the NVAR. Sales dropped because high mortgage rates made homebuying less affordable and appealing to many purchasers. The 30-year fixed-rate mortgage averaged 4.5% in September 2023, up from 4.2% in September 2022².
Low inventory of properties for sale limited buyer options and boosted competition in Northern Virginia. September 2023 inventory supply was 1.22 months, down 1% from 2022. The national unsold inventory increased to 3.4 months from 3.2 months in September 2022 and 3.3 months in August 2023¹.
Northern Virginia home prices rose due to high demand and little supply, making it harder for buyers to find affordable homes. Northern Virginia's September median house sale price was $650,000, up 5% from 2022. The median asking price per square foot was $287 and transaction price $525,000. The average market days dropped from 28 in 2022¹ to 19.
NVAR CEO Ryan McLaughlin said the Northern Virginia housing market saw a bigger reduction in sales and a bigger price increase than the national market because individuals were waiting for mortgage rates to drop and had fewer options. He stated that the market is robust and resilient, allowing prompt and flexible purchasers to choose their ideal homes¹.
In June 2023, the NVAR and George Mason University's Center for Regional Analysis presented a mid-year update to its NVAR Region 2023 Residential Real Estate Market Forecast. The prediction predicts a scarcity of inventory, high demand, and a positive economic outlook for the Northern Virginia housing market in 2023, with risks including rising interest rates, inflation, and pandemic¹.
If you want to buy or sell a house in Northern Virginia, you need to know the market and engage with a competent real estate agent who can assist you navigate the complex and competitive market. Start your home buying or selling experience with me today. I have the expertise and resources to assist you reach your real estate goals.
Sources:
(1) Northern Virginia Home Sales Drop as Prices Rise. http://www.connectionnewspapers.com/news/2023/oct/25/northern-virginia-home-sales-drop-as-prices-rise/.
(2) Northern Virginia Home Sales Drop as Prices Rise | Ellington. http://m.connectionnewspapers.com/news/2023/oct/25/northern-virginia-home-sales-drop-as-prices-rise/.
(3) News. http://www.connectionnewspapers.com/news/Connection/News/.
The Northern Virginia home market is one of the most desirable and costly in the country, but rising mortgage rates are causing problems. In September 2023, home sales in Northern Virginia fell more than nationwide, while prices rose more regionally, according to the Northern Virginia Association of Realtors (NVAR).
Northern Virginia house sales fell 18.2% in September, compared to 15.4% nationally, according to the NVAR. Sales dropped because high mortgage rates made homebuying less affordable and appealing to many purchasers. The 30-year fixed-rate mortgage averaged 4.5% in September 2023, up from 4.2% in September 2022².
Low inventory of properties for sale limited buyer options and boosted competition in Northern Virginia. September 2023 inventory supply was 1.22 months, down 1% from 2022. The national unsold inventory increased to 3.4 months from 3.2 months in September 2022 and 3.3 months in August 2023¹.
Northern Virginia home prices rose due to high demand and little supply, making it harder for buyers to find affordable homes. Northern Virginia's September median house sale price was $650,000, up 5% from 2022. The median asking price per square foot was $287 and transaction price $525,000. The average market days dropped from 28 in 2022¹ to 19.
NVAR CEO Ryan McLaughlin said the Northern Virginia housing market saw a bigger reduction in sales and a bigger price increase than the national market because individuals were waiting for mortgage rates to drop and had fewer options. He stated that the market is robust and resilient, allowing prompt and flexible purchasers to choose their ideal homes¹.
In June 2023, the NVAR and George Mason University's Center for Regional Analysis presented a mid-year update to its NVAR Region 2023 Residential Real Estate Market Forecast. The prediction predicts a scarcity of inventory, high demand, and a positive economic outlook for the Northern Virginia housing market in 2023, with risks including rising interest rates, inflation, and pandemic¹.
If you want to buy or sell a house in Northern Virginia, you need to know the market and engage with a competent real estate agent who can assist you navigate the complex and competitive market. Start your home buying or selling experience with me today. I have the expertise and resources to assist you reach your real estate goals.
Sources:
(1) Northern Virginia Home Sales Drop as Prices Rise. http://www.connectionnewspapers.com/news/2023/oct/25/northern-virginia-home-sales-drop-as-prices-rise/.
(2) Northern Virginia Home Sales Drop as Prices Rise | Ellington. http://m.connectionnewspapers.com/news/2023/oct/25/northern-virginia-home-sales-drop-as-prices-rise/.
(3) News. http://www.connectionnewspapers.com/news/Connection/News/.
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