The Northern Virginia market recorded increased inventories, providing buyers with more choices. Nonetheless, buyers are challenged by affordability and accessing credit.
The June market in Northern Virginia continues the trend of sales numbers coming in just under those from one year ago at this time, but the signs of a stable market have led to an increase in sellers planting signs on their lawns.
“It is all about managing expectations,” said Lorraine Arora, Managing Broker at Long & Foster Real Estate in Springfield. “Some buyers are nervous. When houses are priced correctly, homes will sell.”
Arora explained that since there was no activity in winter months, there was pent up demand for this region’s early spring season. Now, she explained, prices are higher but not all sellers are getting their full price. Buyers are less willing to engage in bidding wars.
The housing affordability may continue to be a challenge in the region, said Mary Bayat, 2014 chair elect of the Northern Virginia Association of Realtors. “While the slightly rising home prices indicate an improving market, people are just not making quick decisions to buy.” Bayat, a broker/owner of Bayat Realty in Alexandria, also noted that the current tight mortgage regulations have been a drag on buyers’ loan process. She noted that mortgage standards are under scrutiny by industry and housing groups at this time.
The Northern Virginia Association of Realtors reported on June 2014 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.
A total of 2,174 homes were sold in June 2014, a 12.90 percent decrease below June 2013 home sales of 2,496.
Active listings continued to show an increase this month compared with 2013. Listings were up 47 percent over last year, with 4,777 active listings in June, compared with 3,247 homes available in June 2013. The average days on market for homes in June 2014 was 30 days, an increase of 25 percent compared to the 24 days on market for homes in June 2013.
Average home sale prices increased slightly this June to $580,013. This is up 3 percent compared to June 2013, when the average price was $563,223.
The median sold price of homes this June, which is $505,000, rose by 1 percent compared to the median price of $499,900 in June 2013.
The 2,047 new pending home sales in Northern Virginia in June is a decrease of 9.62 percent compared with 2,265 contracts that were pending in June of last year.