Mortgage rates are continuing to give some homebuyers (and sellers) pause in Northern Virginia, according to the Northern Virginia Association of Realtors.
"The high rates were a significant factor in slower market activity as the number of closed sales fell 18.2% compared to September 2022 and 23.1% compared to August of 2023," NVAR reported Thursday.
“It’s a challenging market for borrowers and buyers, especially first-time home buyers. The increase in interest rates is a primary deterrent for buyers and would-be sellers. Current homeowners have no incentive to forgo their lower interest rate unless they are forced to move. That’s why home buying options are scarce,” said NVAR Board Member Jamie DeSimone of Keller Williams Capital Properties.
Homes for sale stayed on the market for an average of 17 days in September, which was about 32% shorter than this time last year when the average days-on-market was 25 days.
“We’ve been experiencing the ‘ouch factor’ as high mortgage rates have chilled the market. With the resulting limited inventory, sellers choosing to list their homes are receiving multiple offers and have leverage over buyers. The market remains competitive, as there are more people who want to buy than there are homes to sell,” explained NVAR CEO Ryan McLaughlin.
In the City of Alexandria, the average home sales price was $674,912, which was up nearly 10% of September last year.
