The Northern Virginia real estate market got off to a hot start in 2016. The blizzard might have set us back a couple days, but the market is still doing very well. My team and I put a house on the market just before the snow started and it went under contract in 5 days. Buyers are still out there even though inventory is low. Here’s the scoop on the Virginia real estate market:
Sales in December 2015 increased by about 1% with 2,845 closed transactions. Pending sales were up from 2014 by 9.5% to 2,230. New listings were also up 5%, but active listings are down by 0.8%, resulting in low inventory.
In December, there were only 2.32 months of inventory on the market, which is very low for the region. According to the National Association of Realtors, housing inventory levels across the country have seen a downward trend since 2011.
Despite low inventory, real estate was the best investment in 2015, getting property owners a 6.8% return. Overall, 88% of the population feels homeownership is a good financial decision.
While real estate is a great investment, most people want to buy real estate to have a home of their own or a place to raise their family. However, buyers are concerned about low inventory, saving for down payments, and rising interest rates. **First time buyers will be the most affected if interest rates rise. **
If you are thinking of buying a home, keep in mind that it takes 49 days to close on a loan.
What does all of this mean? Our real estate market is strong. There is high demand for homes and low supply. If you’re waiting for May, June, or July to sell your home, you might want to reconsider. Get on the market now. Buyers are looking, and you’ll beat the competition.
As a buyer, get with a lender and get pre-qualified. You might want to wait for spring for inventory levels to rise. However, if interest rates do go up, that home you can afford today might be too expensive in a couple months. Don’t miss out because you weren’t sure what to do.
If you have any questions, give us a call or send us an email. We would be happy to help you!