It remains a strong sellers market going into spring 2019, like ones we have experienced the past few years. Bidding wars can be expected in some of the more sought after price ranges and communities particularly in all Fairfax County, Arlington, and parts of Alexandria. A seller’s market is defined as a market in which the available inventory of homes for sale cannot satisfy the number of active buyers.
A bidding war occurs when two or more home buyers attempt to outbid each other as they compete to purchase a home.
In some markets in Northern VA, first-time buyers have been met with fierce competition. Some of my clients have been out-bid multiple times before finally winning a bid on a home when leading with their best offer first. While others, their home search and bids continue.
According to the latest market statistics from the Bright MLS here in the Northern VA, there is currently a 1.2-month supply of homes for sale.
With the current houses listed for sale and the the number of buyers actively buying, this means it would take 1.2 months for all the homes listed to sell if no additional listings came to market. According to NAR anything under a 6-month supply is considered a seller’s market. We have not had a 6-month supply in Northern VA since October of 2008.
Good News for Home Buyers?
Nationally bidding wars are down from January of 2018 with 53% to 13% in the start of 2019 as reported by the National Association of Realtors. One reason for the decline is an influx of homes being listed for sale.
Realtor.com’s Chief Economist, Danielle Hale explains why bidding wars are becoming less common,
“[Last year] you might have been the only listing in your neighborhood, and you could put your home up at a certain list price and you would likely see multiple offers at or above that list price. That tide is turning this year.
It’s going to depend on what neighborhood you’re in, but we expect it to be more common this year that you won’t be the only listing.”
However, is this true for the Northern VA real estate market?
Northern Virginia’s Listing Inventory
With spring’s official start yesterday, March 20th, the available inventory of listings are well below the 5 year average, as you can see below. Even new listings coming on the market are below the 5 year average.
The pressure from low inventory will keep prices on a steady upward trajectory through 2019. This will continue even when interest rates start to creep up, and they will creep up.
The best way to keep a thumb on the market without getting into the weeds, watch these two market factors.
****As my normal disclaimer when it comes to broad strakes describing market statistics for Northern VA real estate. Real estate is local in Northern VA, therefore various price ranges and communities can behave differently.
If you are debating on selling your Northern VA home and/or buying a home? If you are a first time home buyer, downsizing, or upgrading, everyones situation and goals are unique. Get real estate advice based on your needs and goals. Contact me, and I will be happy to discuss if a move is right for you.
Bright MLS defines Northern VA as Alexandria City, Arlington County, Fairfax City, Fairfax County, Falls Church City, Fauquier County, Loudoun County, Manassas City, Manassas Park City,, and Prince William County.
My original post found on my Call Joey Keeping Current Matters Blog