FAIRFAX, Va. (April 21, 2022) – Low inventory and higher rates resulted in fewer homes sales in Northern Virginia over last year—which tracks with national trends, according to the Northern Virginia Association of Realtors® (NVAR). Northern Virginia saw a 4.9% decline in homes sales over March 2021, similar to the 4.5% drop nationwide. However, inventory was significantly scarcer in the region compared to nationally.
“Navigating home buying and selling continues to be tricky given the market dynamics. Working with a team of professionals is important to managing this process during these extraordinary times when supply, prices and rates are all in flux—both regionally and nationally,” said Ryan McLaughlin, CEO of NVAR. “Speed and skill are factors in buyers landing a home.”
Existing-home sales decreased in March, marking two consecutive months of declines nationally, according to the National Association of Realtors®, while the Northern Virginia region experienced its third decline in a row, largely fueled by lack of inventory. Housing inventory was down almost 22% in Northern Virginia while it declined by 9.5% nationally from one year ago. NAR reported that unsold inventory sits at a 2.0-month supply, while in the Northern Virginia region—right outside the nation’s capital, there was only a 0.56-month supply in March.
Homes in the NVAR region sold in just 14 days on average in March, a decrease of 30% compared to March 2021 when homes took an average of 20 days to sell. In comparison, nationally properties remained on the market for 17 days in March, down from 18 days in March 2021. Prices for homes rose nationwide with the median existing-home price topping $375,300, up 15% from March 2021. In the Northern Virginia region, the median home price was $650,000, rising 9.2% from a year earlier.
“I expect that rapid price increases in homes will soften with escalating inflation and mortgage rates, but it’s unlikely that homes will lose value in our market. This means that affordability will continue to be a challenge,” said McLaughlin. “In fact at a recent session I moderated as part of the Fairfax County Housing Symposium, consensus was that finding sustainable solutions is paramount to the growth and vitality of our region.”
MORE ABOUT NVAR
The Northern Virginia Association of Realtors® serves as The Voice for Real Estate in Northern Virginia, enhancing the ability and opportunity of its members to conduct their business successfully, promoting professional competency, upholding the principles of fair housing for all, and preserving the right to own, transfer and use real property. With offices located in Fairfax and Herndon, NVAR has grown to more than 13,000 Realtor® and real estate service provider members who carry out a real estate industry in a community of more than 2 million residents. Visit NVAR at www.nvar.com.