(1) Inventory is very low in all price ranges in all jurisdictions.
(2) Mortgage rates are at historical lows (3.75% – 4.00%) for 30 year fixed rate loans.
(3) First time home buyers and real estate investors are jumping into this market based on interest rates and housing shortages. We have shown properties in Fairfax County, Prince William County, and Stafford County during the last 3 months. After these home searches were complete it was obvious finding a well maintained home which is ready to move into immediately after purchase would be difficult during 2012 home searches.
(4) The Obama Administration through The Departments of the Treasury, and Housing and Urban Development have helped curb short sales from entering the market. The Home Affordable Mortgage Program (HAMP) which is designed to lower monthly mortgage payments has helped deplete the housing market of short sale listings. Along with government programs addressing principal reduction alternatives, second lien modifications, USDA special loan servicing, separate modification programs for VA & FHA homeowners, and unemployment mortgage assistance, the Northern Virginia real estate markets have become starved for listings. For more information on these programs click here.
The items discussed above have created the formula for a seller’s market. The deadline for HAMP assistance has been extended until 12/31/13. Our assessment of future home prices and inventory are directly related to employment figures. If unemployment rates in Northern Virginia do not improve by the end of 2013, Fairfax County, Prince William County, Stafford County, Fredericksburg, and Spotsylvania County will see a sudden rise in short sales. As we saw during the collapse of the housing market, without government intervention, homeowners will be faced with short sale options instead of foreclosure. This creates the beginning of the cycle when banks began entertaining short sale proposals. This creates competition to sell your home, and reduces housing prices.
If you are trying to decide if you should sell or rent your home, please feel free to contact us. We will give you the latest market statistics and trends to help you make an informed decision.
Market Update: June 16, 2015
The principals of the Northern Virginia market haven’t changed. Low inventory, but increasing. Increased prices, but slowing. The statistics below are from Metropolitan Regional Information Systems, Inc.
- Home inventory has increased 20% since 2014. There are 10,613 available homes. This time last year 8,788 homes were active listings.
- The average days on market are 42. In 2014 this figure was 36 days.
- The average sold price to original list price is 97.9%. This was slightly higher in 2014 at 98.3%.
- Home prices have increased on average 3.2% in Northern Virginia since May 2014.
- Home price differences between 2014 and 2015:
- Fauquier County: +8%.
- Fairfax County: +4.4%.
- Loudoun County: +1.2%.
- Manassas City; +2.6%.
- Manassas Park City: +16.1%.
- Prince William County Foreclosure and Short Sale Update (moyersteamblog.com)
- New Short Sale Guidelines Benefit Homeowners (moyersteamblog.com)