Except for comparatively high mortgage rates and higher prices, the spring real estate market is starting to look a lot like 2019.
"Northern Virginia home sales increased 28.3% in February, compared to the prior month. Market activity resembles both February 2019 and February 2020, prior to the significant jump during the pandemic. Home sales in Northern Virginia are down 26.4% compared to February of 2022," according to the Northern Virginia Association of Realtors® (NVAR)."
Mortgage rates in February 2019 were around 4.25% and rates in February 2020 were around 3.75%. Mortgage rates in February of this year were above 6%, adding significantly to the cost of a home for buyers.
In the city of Alexandria, the average price of a home was $695, 114 in February, an increase of 7% from the February prior. In Fairfax County, the average price was $717,550, an increase of less than 1%.
According to NVAR, "Homes are on the market longer than this time a year ago due to relatively high mortgage rates compared to recent years. The average days on the market was 32 days, up 28% compared to February 2022, but down from 36 days in January 2023. Inventory is also increasing but remains in short supply."
"Our region is steadier and more predictable than many other U.S. markets, that have seen sharper price increases and decreases,” explained NVAR CEO Ryan McLaughlin. “Limited inventory has dictated home prices here in Northern Virginia and across the country, amid market challenges such as inflation, mortgage rates and subdued sales activity.”
