Northern Virginia Home Sales Drop as Prices Rise

Northern Virginia Home Sales Drop as Prices Rise

Interest Rates Impact Housing Market Regionally and Nationally

Home sales slid more in Northern Virginia than around the nation in September while prices jumped more regionally, reported the Northern Virginia Association of Realtors (NVAR). High mortgage rates contributed to sales dropping 18.2% in September in Northern Virginia while nationally sales declined 15.4%.

“Around the region and nation last month people were sitting and waiting for mortgage rates to drop, translating to fewer options for buyers. This meant that home sales receded while prices went up nationwide. This was even more pronounced in our market which experienced a bigger drop in sales and bigger hike in prices,” said NVAR CEO Ryan McLaughlin.

In Northern Virginia, the months’ supply of inventory for September 2023 was 1.22 months, down 1% from September 2022. September’s inventory figures were higher than August when inventory stood at 1.08 month’s supply of inventory. Unsold inventory across the country sat at a 3.4 month’s supply, up from 3.2 months in September 2022 and 3.3 months in August 2023.

Fewer homebuying choices pushed prices up as the median sold price for a home in September reached $650,000 in Northern Virginia, up 5% from September 2022. 

On average, Northern Virginia homes stayed on market for 17 days in September 2023, down 32% from the previous September when the average days on market was 25 days. 

In June, NVAR released a mid-year update to its NVAR Region 2023 Residential Real Estate Market Forecast. The forecast noted that a continued lack of housing inventory, pent-up buyers’ demand creating a sellers’ market, and positive economic conditions peppered with mounting risks may be in store for the Northern Virginia housing market for the remainder of 2023. The update was created in cooperation with the Center for Regional Analysis at George Mason University (GMU-CRA).