Sellers Win in NOVA's Tight Real Estate Market
Sellers are still winning in today’s shifting market. Real estate transactions have slowed but sold prices are high! The real estate market has been pretty sluggish the last 5 months and the number of homes sold is down 20% over last year yet sold prices are still surging.
I think one of the most interesting facts about the current market is the list to sold ratio. There has been an increase ! Even with the dip in home sales and the increase in the average days on market, the low inventory and pent-up demand have kept the market competitive for buyers. In March 2023, Virginia witnessed an increase in the average sold-to-list price ratio, which climbed above 100% for the first time in six months. This increase indicates that sellers are getting more than their asking price, on average.
Sellers might be hesitant to give up a paid off home, or not want to lose their sweet sub 3% mortgage interest rate but if the time has come to sell and you have decided where you want to go next it is an excellent time to release that equity! You might have to wait a little longer too. Most sellers are experiencing longer days on market so be patient.
If rates continue to go down this year, more buyers will be jumping into the market, which will also be great for sellers, but will drive up demand and continue to increase the list to sold price ratio. That means competitive offers from buyers where they have to escalate their offer or waive contingencies to win in multiple offer situations.
Additionally, following the collapse of Silicon Valley Bank and Signature Bank and the subsequent drop in mortgage rates, it’s possible there could be an influx of buyers who might have pushed pause when rates were trending up. “The recent events in the banking sector continue to resonate across the nation’s economy,” says Virginia REALTORS® CEO Terrie Suit. “If mortgage rates continue to drop, it could induce activity in what has been a slowing housing market.”
If you need some advice on what to do in our current market get in touch with me. I would love to sit down and discuss the trends and stats so you get a clear understanding of when the right time to jump in the market.
