When it comes to the Spring Housing Market in Fairfax VA, there are a few things to look for. Prices are rising, demand is strong, and the inventory of homes is low. There won't be many bidding wars, and buyers will enjoy a high equity level. Here are some tips for homebuyers to make the most of the spring housing market in Fairfax VA.
Demand for homes continues to rise
The Northern Virginia housing market has been experiencing a lack of inventory, and this lack has been reflected throughout the country. While condos were once easier to find than other types of property, their inventory has plummeted in recent weeks. The current inventory of condos is below what it will be in October 2020/2021. While the lack of supply may seem frustrating for some buyers, it is likely to balance out in time, especially once interest rates go back up.
According to the latest Fairfax County data, median sales prices rose by nearly $10,000 from February 2021 to February 2022. While this is the second highest price increase since June 2021, it is still far lower than last year's highs. However, while home prices will likely continue to increase, affordability levels and rising mortgage rates will still hold the gains. Whether or not the market rises above these predictions is unclear.
Inventory is low
There is a very low inventory of homes for sale in the Fairfax VA housing market this spring, with only a few months' supply in the City of Alexandria, Loudoun County, and Fairfax County. This is an indication of increasing demand and limited supply. In Fairfax County, the median sold price is $560,000, with 14 days on the market or less. In Loudoun County, the average sales price is $580,050.
The lack of inventory is an issue for home buyers throughout the state, but the housing market in Virginia is especially pronounced during spring, when inventory usually increases. At the end of February, there were only 12,142 homes for sale, down nearly 22% from February last year. The number of active listings is less than a third of the five-year average. The lack of inventory is making the market more competitive for home buyers.
Bidding wars will be rare
Low interest rates are driving home buyers to the local housing market. In fact, builders have been reducing production, with the price of lumber per board foot increasing 254%. That's lead to a number of delayed or canceled projects. And while the temperatures are expected to rise this spring, the inventory of new homes is far less than last spring. This means more competition for homes.
In a tightening market, bidding wars are becoming more common. In a low-supply market, multiple buyers are interested in the same property and make increasingly high offers to win it. During the last recession, bidding wars were not so common, but when prices remained low, people were able to move anywhere they wanted. And with the price of real estate rising nationwide, this trend is likely to continue in Northern VA.
Homebuyers will have a high equity
The spring housing market is expected to be fierce, with record low inventories of available homes. Buyers must be ready to jump at the chance to buy a home despite the high equity they have. This trend is expected to continue, though rising mortgage rates will likely exert pressure on the market. Here are some things to keep in mind. Here are some tips for homebuyers. After all, the spring market is traditionally the best time to buy a house.
Among the factors that contribute to high equity: rising home prices and rental costs. The annual inflation rate is over 6% and U.S. unemployment claims are at 52-year lows. Incomes are also increasing due to the competitive job market. In addition, flexible work environments are attracting talent, enabling homebuyers to search for less expensive metro areas and suburbs. However, the economy continues to face some risks.
New jobs created by Amazon will have a ripple effect
The impact of Amazon's new headquarters is projected to be 15 billion dollars by 2030, and the new jobs it will create will ripple throughout the Washington, DC, region. Typically, homes in Fairfax County go up for sale within five days and sell for around 2% above their list price. The new jobs will also create more demand for Fairfax County homes and will help support the local housing market.
The arrival of Amazon HQ2 coincides with the downsizing of Baby Boomers, which will result in an increase in available housing. The increase in new housing stock will alleviate the pressure on housing supply. Additionally, Amazon employees will likely buy new construction instead of competing with the existing stock. Ultimately, this will lead to a boom in Fairfax County home prices.