October Saw Brisk Housing Activity with a 7% increase in Sales; Serious Buyers are Taking Action, New Under Contracts Rise, Reports the Northern Virginia Association of Realtors®
Fairfax – “In a perfect world, real estate practitioners like to observe that their market has achieved a balance,” said Bob Adamson, 2017 NVAR Chairman of the Board. “As of October, our home equity gains remained within normal limits while interest rates stay pinned at historic lows.
“These factors add to local buyer confidence,” Adamson continued. October resulted in a 7 percent increase in sales, recording 1,652 homes sold compared to 1,540 transactions last October. “While economic progress has been patchy throughout the Commonwealth, Northern Virginia has excellent employment levels, with only a reported 3 percent of residents not working. Northern Virginia has returned to solid ground since the recession,” he explained. “Our hope is that this continues.”
Said NVAR Board of Directors member Gary Lange, Weichert Realtors® in Vienna,
“The market in October was brisk. There seemed to be lots of activity from people who’ve been waiting on the sidelines for the right time. The increase in inventory has given buyers a bit more opportunities out there but properties that show well, have been updated and are priced right are still going off the market quickly.”
Lange noted that people have not been deterred by promised interest rate hikes. “Sellers remain bullish on prices,” he said.
Brokers are noting that listing activity has been brisk in the early fall season. According to Brian Block, of RE/MAX Allegiance in Alexandria, “In October, our office remained relatively busy. While buyer activity seems to be a bit slower in the early fall, inventory has been increasing gradually. Most sellers seem willing to wait for their price, though those that have an urgent need to move because of a job transfer or family situation are reducing prices to try to effectuate a sale before year’s end.”
Said NVAR CEO Ryan Conrad, “Congressional budget proposals do cause concern for a real estate-driven economy at both local and national levels. Yet, our housing market for October shows the seriousness of our local buyers who want to celebrate their holidays in new homes. While our active listings are down some, we saw increases of contracts pending, showing that many buyers are making commitments now.” In October, 645 new contracts were written which represents an increase of 21 percent from last year at this time, Conrad pointed out. Last October saw 532 new contracts ratified.
“Bottom line is that our region is still showing a stable and solid housing market,” Conrad said. “We can’t predict the future, but those are great trends for now.”
October 2017 Regional Home Sales Compared to October 2016: Northern Virginia
The Northern Virginia Association of Realtors® reports on October 2017 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 1,652 homes sold in October 2017, a 7.27 percent increase above October 2016 home sales of 1,540.
Active listings decreased in October by about 9 percent compared with 2016. This past October, there were 4,038 active listings, compared with 4,435 homes available in October 2016. The average days on market (DOM) for homes in October 2017 was 44 days, a decrease of about 15 percent compared to the 52 DOM for homes in October 2016.
The average home sale price rose by 3 percent, to $564,356, from last October’s average of $547,805.
The median sold price of homes this October, which was $475,000, rose by 2 percent compared to the median price of $465,500 in October 2016.
The 1,798 new pending home sales in Northern Virginia in October were about 4 percent above the 1,731 new contracts pending in October last year. Total pending sales in October were down by about 5 percent, to 2,206, compared with 2,326 pending contracts in October 2016.