Inventory is still low and it remains a seller’s market. Compared to last year, less homes are being sold. Still, buyers are not doing the same. There are less showings, less offers, and more contingencies in contracts. The days of multiple offers, $100,000 over asking, and going under contract in a day seem to be trends of the past. Buyers report fear of higher interest rates, inflation, and soaring home prices. So while the month’s supply of home is low, average home prices continue to rise. Here is the latest Real Estate Market Update for May 2022.
Homes that Sold
The median sale price for a home in Northern Virginia is now $645,000, up from $615,000 at the end of March. This is a 10% increase from the same time last year and a 5% increase from the previous month.
By the end of April 2022, there were 3,645 homes sold. This is 15% less than last year’s figure BUT a 6% increase from March 2022 sales.
The average number of days it took to sell a home went up from 12 days to 9 days in April. This is 7 days less from last year and 3 days less than last month.
The median price per square foot for homes is now $301 per square foot. This is up 12% from last year and 2% from last month. The cost of homes continue to rise.
The total value of homes sold amounted to $2,539,171,510. This is down 8% from this time last year and up 7 % from last month.
The month’s supply for April is 0.7%. This is up from March’s figure of 0.58. This number shows how many months it would take to sell all the current homes now on the market. Most consider a balanced market, where buyers and sellers of homes are on the same playing field, to be about 3 months supply. This figure is significantly low especially for a Spring market but there seems to be good news on the horizon as more homes are coming on the market each week.
Mortgage Interest Rates
According to Nerd Wallet, mortgage interest rates on a 30 year conventional are at about 5.6%. This is as of May 31, 2022 and is up from 5% reported last month.
What Agents are Seeing
As the Spring market continues on, there are more and more homes on the market. Activity waned a bit in most locations as buyers tackled some bad weather, high mortgage rates, and higher priced homes. Still, the market is picking up and homes in sought after locations and in great condition are going under contract in just a few days. This trend is expected to continue as long as inventory stays low.
What Does This All Mean?
The data highlights the current lack of inventory. There are 16% less homes up for sale compared to this time last year. The good news is that it is also 10% more than last month’s inventory. It remains a sellers market and is projected to remain through Spring, at least. For now, Sellers still have the advantage while Buyers are finally seeing more options to choose from.
The market is definitely changing as buyers are less likely to get into bidding wars on homes or waive all contingencies. It’ important to work with someone who has the information to prepare you for this unique and ever-changing housing market.
Also feel free to compare this update with last month’s Market Update – March 2022