According to the latest data from the Northern Virginia Association of Realtors (NVAR), the real estate market in northern Virginia continued to improve in August. While home sales were down 12.4% compared to August 2022, this represents a smaller decrease compared to previous months, as there was a 20% drop in July.
NVAR CEO, Ryan McLaughlin, expressed optimism about the market, stating that “the recovery reflects the resilience of our market”. In addition, the median home sale price in August increased by 11.6% compared to the previous year, reaching $700,000.
However, finding a home to purchase remained a challenge in August due to limited options and higher prices. Stacy Holscher, a member of the NVAR board of directors, advised buyers to be prepared and make quick decisions. Higher mortgage interest rates also sidelined some buyers, leading to fewer housing options compared to August 2022.
The inventory supply decreased by 1.4% compared to the previous year, resulting in an inventory supply of 1.08 months, lower than the five-year average of 1.2 months. On average, homes stayed on the market for 17 days in August, two days less than in August 2022.
The limited housing supply contributed to higher prices, with a median sale price of $700,000 in August, an 11.6% increase compared to the previous year.
NVAR data includes home sales in Fairfax and Arlington counties, as well as the cities of Alexandria, Fairfax, and Falls Church, and the cities of Vienna, Herndon, and Clifton. In August 2023, there were a total of 1,535 closed sales, with a total sales volume of $1.27 billion. The average sale price was $831,968, representing a 15.8% increase. Active listings decreased by 30.7%, with 1,492 listings available. New pending sales also decreased by 16.7%, with 1,304 new pending sales in August.
Overall, the real estate market in northern Virginia is showing signs of improvement, with a smaller decrease in home sales and an increase in median home prices. However, limited supply and higher prices continue to be challenges for homebuyers.
Sources: Northern Virginia Association of Realtors