So far, 2018 has been a positive year in terms of the housing market — and that trend looks to continue for the rest of the year.
We’ve recovered from the economic recession of a few years ago, and the economy has regained its strength. Those factors have contributed to a tight market here in Northern Virginia. Because the inventory of available houses is down — not just in our area, but nationwide — the price of homes has been going up.
A Seller’s Market in Virginia
It’s true that both mortgage rates and interest rates have been edging upward. But those rates are still historically low when you look at where they’ve been over the past several decades.
This means that while it’s a seller’s market in the state of Virginia this year, the relatively low interest rates also make it a decent time for buyers, as well. That’s why it’s important to keep the big picture in mind — and remember that rising interest rates signal the economy as a whole is doing well.
All of this is in line with a survey from the National Association of Realtors — to which I belong — that found about the same number of Americans believe now is a good time to sell a house (75 percent) as the number who think it’s a good time to buy (68 percent).
Buyers Can Still Find Affordable Financing
Despite the rate increases, financing for homebuyers remains historically affordable. When you combine that with Virginia’s low unemployment rate and high consumer confidence, the conditions indicate a continued strong housing market.
According to the National Association of Realtors, home sales rose 9 percent nationwide in July. At the same time, the number of days a house spent on the market and the number of listings each dropped. Those findings reflect the strengthening economy and low unemployment rate.
In addition, millennials are having a major impact on the home market. Millennials account for about two-thirds of all first-time homebuyers — and 34 percent of all homebuyers in general, according to Inc. magazine.
In Prince William, Both Listings and Prices Are Increasing
Sales here in our area also reflect these state and national trends. Here are the most recent market statistics for July 2018:
- A total of 862 homes were sold in the county. That’s a slight decrease of 1.7 percent compared to May 2017 closed sales.
- New listings in July 2018 increased slightly, from 1,032 last year to 1,045 this year.
- The median sold price of homes increased 3.1 percent to an average of $359,900 as compared to last year’s $349,000.
According to the Realtor Association of Prince William, buyers are swiftly snatching up moderately-priced properties: “Existing supply is still not at a healthy level, and new home construction is not keeping up to meet demand. For prospective first-timers looking to begin their home search this fall, it is expected that competition will remain swift.”
Wow! There’s so much information about the housing market to understand — whether you’re buying or selling. And it can have a direct impact on your specific situation.
That’s why it’s so important to have the right real estate agent on your side to guide you through the process. I’ve lived in Northern Virginia my entire adult life, so I understand this market. Contact me and we’ll talk about what you need. And don’t worry about pressure — there won’t be any.
Warmly,
Marcia
Looking to buy or sell a home in Gainesville, Haymarket and Manassas? I’d love to partner with you on your next home buying and selling adventure.
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