April Stats Reveal Pent-Up Demand for All Housing Types
Strong Closings, Pendings and Active Listings Fuel
Fairfax –Northern Virginia Association of Realtors® notes that sales transactions for April 2015 were on the rise by 4 percent, providing homeowners and buyers with a taste of a brisk spring market.
“Homes sales have accelerated this past April,” said Mary Bayat, NVAR’s 2015 chair. “In our NVAR footprint in April, 1,817 homes sold compared to 1,744 that sold in April of 2014. New pending contracts -- which are closings that will likely occur in the next 30 - 90 days -- rose 9 percent to 2,509. Inventory is improving, which is shown by our 33 percent increase in active listings compared to last April,” Bayat said.
“We can conclude that there is a pent-up demand for housing in Northern Virginia,” Bayat said. “It is being satisfied.” Between the millennials who are ready to be on their own, and the other buyers who are deciding to act, we are seeing sustained closing numbers for this time of year, she explained. “This is what our new normal is,” Bayat added.
“The market right now is very sensitive,” said Katie Wethman, Realtor® and managing director of The Wethman Group at Keller Williams Realty. “Buyers have data at their fingertips and know a value when they see it. But, they are quick to pass when they feel a property is overpriced.”
Maintaining a house in show-ready condition with market-value pricing is critical for serious sellers, advises Wethman. “Buyers see interest rate hikes looming on the horizon, and are motivated to move quickly, but don’t want to risk overpaying,” she said
Tom Bellanca, principal broker, Dulles Corridor Real Estate sees increased foot traffic on his listings. “Many sellers are expecting higher increases in the market which haven't yet materialized,” he said.
“I'm also seeing an increasing number of property owners who are moving out of the area and prefer to rent their homes rather than sell, because either prices haven't gone up enough or the owners might move back to the area,” Bellanca said.
Sellers have high expectations, Bellanca pointed out. “The owners who are selling are holding steady on their price, hoping that the market catches up with their expected increase since the inventory might get tighter throughout the spring and last year’s listings are burned off,” he said.
April 2015 Regional Home Sales versus April 2014 in Northern Virginia
The Northern Virginia Association of Realtors® reports on April 2015 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.
A total of 1,817 homes sold in April 2015, a 4.19 percent increase over April 2014 home sales of 1,744.
Active listings continued to show a significant increase this month compared with 2014. Listings were up 33.27 percent over last year, with 4,955 active listings in April, compared with 3,718 homes available in April 2014. Homes continue to take longer to sell this year than last. The average days on market (DOM) for homes in April 2015 was 47 days, an increase of 20.51 percent compared to the 39 DOM for homes in April 2014.
The average home sale price remained flat this April, at $545,601. This is a less than 1 percent decrease compared to April 2014, when the average price was $547,292.
The median sold price of homes this April, which was $485,000, rose by 1.68 percent compared to the median price of $477,000 in April 2014.
The 2,509 new pending home sales in Northern Virginia in April is an increase of 9.13 percent compared with 2,299 contracts that were pending in April of last year.
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