The real estate market in Northern Virginia is acting more like it did before the pandemic, according to the Northern Virginia Association of Realtors (NVAR).
In December, home sales in the region "slipped to just above 2014 levels as December capped off the year with a continued downward trajectory, dropping 44.8% compared to December 2021," according to the organization.
Median home sale prices were up 5% for the year, but homes are taking a bit longer to sell and inventory remains low (but higher than it was a year ago).
“Sellers should expect their homes to stay on the market a bit longer than years past, but prices should remain stable. Buyers understand the value of homes that are in exceptional condition. In many ways, this resembles pre-pandemic 2019—which signals a return to a more normal market, ” explained Heather Embrey, NVAR Board President and Realtor with Better Homes & Gardens Real Estate Premier. “The increase in active listings is also a positive sign for buyers as more housing inventory provides opportunities to possibly negotiate and find the right home.”
In part due to higher interest rates, homes are staying on the market longer, averaging 32 days in December, which is up 14.3% compared to December 2021. The average days on market for the whole year was significantly lower at 19 days.
“The increase in mortgage rates continue to be a common concern for homebuyers. However, these rates are in line with long-term trends and buyers will adapt,” explained NVAR CEO Ryan McLaughlin. “According to our 2023 forecast, we anticipate a market that’s more similar to what we knew pre-pandemic. Realtors® can help buyers and sellers understand these trends.”
For the first time in a while, the median sold price for a home stabilized with December 2022 and 2021 both at $599,900. This still represented an increase compared to the (pre-pandemic) December 2019 median sold price of $554,000. However, it was a decline from November 2022’s $621,000. Looking at the full year, the median home price was $650,000, an increase from 2021’s $620,000.
Other highlights from the NVAR report:
- The average sold price for a home in December 2022 was $707,305, down 0.1% from December 2021 but significantly more than December 2019 (pre-pandemic), when the average sold price was $641,789.
- The number of active listings in December 2022 was 1,325, up 26.9% from December 2021, when there were 1,044 listings. This number was down from December 2019 (pre-pandemic) when the number of active listings was 1,446.
- Pending sales in December 2022 were 797, down 37.3% compared to December 2021.
