Mortgage interest rates are declining, but so are home sales, according to the Northern Virginia Association of Realtors.
“Fewer homes sold this August compared to last year even though consumers had more choices as supply loosened. The increase in inventory did not dampen prices, which continued to climb. The good news is that mortgage rates are slowly declining, giving consumers more buying power,” explained NVAR Board Member Tatiana Busch, of eXp Realty.
In other words, it's taking a bit longer for homes to sell, and buyers have more homes to consider.
Further decreases in mortgage interest rates could help buyers who have been on the fence about moving.
"With more selection, homes in August stayed on the market longer at 18 days, up 6.7% from the previous year and up from July 2024’s 16 days. This is higher than the five-year average of a 1.2 month’s supply," according to NVAR data.
“Our new normal is variability in home sales. Recently, we’ve observed an upswing in supply, which has helped meet the strong demand in our region. While affordability remains a concern, a continued drop in mortgage rates should help ease that challenge. Given that housing is a vital part of our region’s economic health, staying informed about real estate trends is essential,” said Ryan McLaughlin, CEO, NVAR.
Northern Virginia Association of Realtors
