Where are the Northern Virginia houses going?
Northern Virginia real estate market stats are in for the month of January 2019 – with some interesting quirks.
This week we are looking at inventory and sales for the month of January 2019 in Fairfax and Loudoun Counties. Last week we were looking historically at supply/demand and inventory in an attempt to predict the upcoming market.
Today let’s go a little deeper.
The housing inventory crisis in Virginia continues – there are 420 LESS homes on the real estate market today than this time last year. Meaning supply is extremely limited. So, one would expect that houses would be FLYING off the market and prices going UP, UP, and AWAY. Yet this is NOT the case. The market remains stable – in the face of the furlough, the limited homes, the rising interest rates – Northern Virginia real estate prices stand seemingly unaffected. Slow and steady – small increases in value continue – as if nothing at all is going on.
So what happened in January?
Looking at the chart above, one section stuck out like a sore thumb:
If there were 1,689 homes put on the NOVA market for sale in January, and of that 1,046 sold – why did the inventory DROP by 372 homes? Where did the other Loudoun and Fairfax houses go? Is this new math?
There are really only 2 ways a property comes off the market – a successful sale or it is taken off.
The math above means that almost 400 sellers gave up for one reason or another. Either their contract expired without a sale, they called off their move and opted to stay put, or decided to rent the property out instead.
This reinforces the trending that we have been seeing in the local NOVA real estate market. Properties simply must be priced right, staged appropriately, and ready to go – or the buyers are not making offers. Those 400 sellers know it, the numbers back it up, and now you know it too.
But Gina, what does this all mean for me???
Knowledge is power.
As a buyer you have very little to choose from. I would suggest that if a home has been on the market for 30 days or more – revisit it. The seller may be more negotiable than our typical 99.X% of sales price.
As a seller, make sure you have a strong marketing plan in place with your REALTOR to hit the market correctly. While there are very few other properties to compete with – buyers are not just taking anything – they are rejecting those that don’t meet their needs.
If you are considering buying, selling, or investing in real estate this year – call Gina Tufano and Team AGC today to start spring training – and hit a Northern Virginia real estate home run!