Real estate is an ever-changing industry, and it’s important for both buyers and sellers to stay informed about the current market conditions. Steven and Caitlin Ellis from Ellis Properties provide a comprehensive update on the Northern Virginia real estate market as of March 2023.

The Northern Virginia real estate market has seen a significant increase in sales over the last month, with a 60% increase across all four counties in the region. The biggest increase in sales prices has been seen in Arlington, where the average sales price is around $815,000.

However, despite the increase in sales, the biggest issue in the Northern Virginia market continues to be a lack of inventory. As of March 2023, there are only 230 homes for sale in Arlington and 280 in Prince William County. This low level of inventory is leading to multiple offers, waived contingencies, and a highly competitive market.

The Ellises also discuss the market from the buyer’s perspective, highlighting the latest data from the Mortgage Banker Association. The mortgage purchase application index, which tracks the number of people applying for a mortgage, is currently at its lowest level in the 21st century. This means that there are fewer buyers in the market, but the ones who are there are serious and hungry for homes.

For sellers who are thinking of listing their homes in the next 30 days, the Ellises believe that they are in great shape. With the spring market yet to take off, serious buyers are still looking for homes, and there is not a lot of other inventory out there to compete with. However, for those thinking of listing their homes in the next 45-90 days, we recommend bumping up that schedule to beat the inventory numbers and capture some of those serious buyers.

For buyers who are wondering about interest rates, a 30-year conforming loan is currently around 7%. While this number has been hovering around this mark for the last few weeks, economists predict that interest rates will drop back down to 6.5% or even lower by the end of the year. Therefore, for those who have time to wait, it might be wise to hold off until later in the year to purchase a home. However, for those going the jumbo loan route, interest rates are likely to be around 7% in the spring and summer.

In summary, the Northern Virginia real estate market is currently experiencing a shortage of inventory, leading to a highly competitive market for buyers. However, serious buyers are still looking for homes, and sellers who can list their homes in the next 30 days are in a good position to capture some of these buyers. For buyers, interest rates are currently around 7%, but economists predict that they will drop back down to 6.5% or lower by the end of the year.