NoVA residential real estate market is cooling down with fewer bidding battles
NORTHERN VIRGINIA – The Northern Virginia real estate market is cooling off as many sellers bringing their homes to market in late summer and early fall may have waited too long for the price they wanted.
Property prices are still incredibly high in the area, especially in areas like Arlington, Falls Church, and Alexandria. However, buyers aren’t offering as much money on homes as they are in the region’s scorching residential property market from late 2020 to July 2021.
As the calendar turns to November, homes stay in the market longer and sellers in many areas of Northern Virginia are lowering prices.
The slowdown in real estate sales in Northern Virginia was greater than in the rest of the country. According to Northern Virginia Brokers Association, the slowdown in September was 5 percent year-over-year, while sales in September declined 2.5 percent nationwide.
“Unlike the previous months, the Northern Virginia market slowed more and homes stayed in the market longer than the national market in September,” said Ryan McLaughlin, CEO of NVAR, in a statement. “This was good news for buyers as they were more likely to get a home without an intense bidding war.”
Another difference in the local market is that sales prices in September 2020 were essentially unchanged from the previous year, with an average sales price of $ 595,000, while prices continued to skyrocket nationally, increasing by 13 from September 2020. 3 percent, according to the National Association of Realtors.
In Northern Virginia, real estate stayed on the market longer in September than last year, an average of 21 days versus 19 days in 2020. Nationally, however, real estate stayed on the market an average of 17 days in September, up from 21 days in September 2020.
The housing stock in the Northern Virginia region rose nearly 15 percent in September. Nationwide, the housing stock has shrunk by 13 percent compared to the previous year.
“The local collapse in demand may be the result of a regional shift in attention from home buying to back to school and a return to personal work,” said McLaughlin. “The region’s solid economic base continues to support a healthy market for buyers and sellers.”
A shortage of inventory was a major driver of the rise in property prices in Northern Virginia earlier this year. Growing inventory over the past few months means fewer bidding battles.
But real estate prices in Northern Virginia remain incredibly high compared to other parts of the state, making it difficult for families to move from renting a home to owning a home in the area.