U.S. Housing Inventory Hits a New Low – That’s GREAT! (If You’re Selling!)

Here’s the latest from our colleagues at Keeping Current Matters.
For info about YOUR neighborhood (or the neighborhood you want to live in), give The Belt Team a call at (703) 242-3975. We can provide you with detailed facts PLUS the “boots on the ground” data that will help you make the RIGHT move! Because what’s happening in Vienna may be different than in Arlington. Even more important is price range – because we are seeing a slowing in the upper ranges, while other price ranges remain HOT!
U.S. Housing Inventory Hits a New Low… List Your House TODAY! | MyKCM

Every summer, families across the country decide if this will be the year they sell their current house and move into their dream home.

Mortgage rates have hovered around 4% for all of 2017, forcing buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!! At the same time, inventory levels of homes for sale have dropped dramatically as compared to this time last year.

Trulia reported that “U.S. home inventory has tumbled 8.9% over the past year and has now fallen for nine consecutive quarters.” There is now 20% less inventory than there was five years ago.

Here is a chart showing the decrease in inventory levels by category:

U.S. Housing Inventory Hits a New Low… List Your House TODAY! | MyKCM

Bottom Line

Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2017, now may be the perfect time.

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Real Estate Market Shift Spells “Opportunity” for Some, “Reality” For Others

Opportunity or Reality

The real estate market in Northern Virginia is continuing to experience a subtle shift. While we’re still seeing competitive situations and multiple offers on some homes in some areas, other areas are seeing average time on market as high as 6 months and housing inventory of more than a year. If you’re thinking of buying or selling your home, you will definitely want to take a look at these numbers – because numbers tell a story!

City # Homes On Market Avg Days on Market # Under Contract Past 30 days #Months Housing Supply
Vienna 242 102 73 3.3
Sterling 281 50 109 2.6
Springfield 257 52 113 2.3
Reston 283 54 97 2.9
Oakton 104 112 28 3.8
McLean 321 108 66 4.9
Herndon 237 65 77 3.1
Great Falls 224 179 15 14.9
Falls Church 296 58 117 2.5
Fairfax 445 55 182 2.5
Dunn Loring 7 49 1 7.0
Chantilly 53 51 14 3.8
Centreville 243 61 80 3.0
Burke 105 48 53 2.0
Ashburn 558 93 143 3.9
Arlington 610 75 246 2.5
Alexandria 1181 79 440 2.7

The area and price range you’re looking in will vastly affect what strategy you employ.

If you’re looking to buy in Great Falls for example, then you have a HUGE amount of leverage when making an offer. Currently, there are 224 homes for sale and the average time those homes have been on the market is SIX MONTHS. There is also a FIFTEEN MONTH supply of housing right now. That means if homes sell at the rate they have over the past 30 days, then it would take 15 months to sell all of the homes currently on the market. That spells OPPORTUNITY for buyers. And it spells REALITY for Sellers. It’s no longer the time to price aggressively to “see what the market will bear.”

(Search Homes For Sale in Great Falls)

On the other hand, if you’re looking in Burke, you’ll find the complete opposite. Average days on market for active listings is less than two months. And there is only a 2 month supply of housing. Less than 3 months housing supply means that Burke is still experiencing a Seller’s Market. What does this mean? Sellers may still be able to push the envelope; and Buyers will likely find themselves competing for homes. This means Buyers need to adjust their contract strategy accordingly – being prepared to offer more, use an escalation clause, drop contingencies, offer a free rentback or a number of other strategies.

(Search Homes For Sale in Burke)

When you look at the chart above – what you’ll see is that in general, the higher price areas (like Great Falls & McLean) are starting to see longer marketing times and a much larger housing supply. While the more affordable areas (like Burke & Springfield) are still firecely competitive.

(Search Homes For Sale in Great Falls) (Search Homes For Sale in McLean)

(Search Homes For Sale in Burke) (Search Homes For Sale in Springfield)

Areas like Vienna, Oakton & Ashburn are experiencing what we call a “W” Market. Buyers in these markets are extremely price sensitive and there are pockets of Buyer & Seller submarkets embedded within each – some Seller’s, some Buyer’s, some Balanced Markets.. As an example, we recently put 3 listings on the market in Vienna between $800,000 and $900,000. One had multiple offers and sold in 3 days over list price. The others are still on the market. We are seeing Buyers step back and make much more considered decisions – sometimes not even looking at homes they feel are overpriced, and/or not being able to look past issues like dated kitchens. This means Sellers must be much more on target when setting that initial price in order to end up at the top of the W, and not at the bottom.

(Search Homes For Sale in Vienna) (Search Homes For Sale in Oakton) (Search Homes For Sale in Ashburn)

For more info about YOUR neighborhood or the neighborhood you WANT to live in, contact The Belt Team at (703) 242-3975. We’ll help create a personal strategy for YOUR market. regardless of whether you’re buying or selling, you deserve the BEST Real Estate Team in Northern VA!

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Are We In A Buyer’s Market or A Seller’s Market In Northern VA?

Northern VA Real Estate Market Fluctuation

When we meet with our Buyers & Sellers for their initial consultation, one of the things we talk about is what’s happening nationally, regionally and locally in the real estate market – how much homes are selling for, what’s on the market, and how fast homes are selling. The question that comes up most often is “Are we in a Buyer’s Market or a Seller’s Market?”

First, let’s define the terms:

“Balanced Market”: is a real estate market where there is about 6 months of housing inventory. There is no real advantage to one side or the other.

“Buyer’s Market”: is a real estate market where there are more homes on the market than there are Buyers, so much so that Buyers have the upper hand in negotiating and can often get a deal. Typically, a “Buyer’s Market” is defined as more than 6 months of housing inventory.

“Seller’s Market”: is a real estate market where there are a plethora of Buyers and not many homes on the market. This means Sellers have the advantage and this is a market where we see competing offers on many homes. Typically, a “Seller’s Market” is defined as less than 3 months of housing inventory.

So where are we today in Northern VA?

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In most areas in Northern VA (Alexandria, Arlington, Ashburn, Burke, Centreville, Chantilly, Dunn Loring, Fairfax, Falls Church, Herndon, Reston, Springfield, Sterling & Vienna) – housing inventory is less than 2 months and we are in a Seller’s Market.

In Oakton, housing inventory is just under 3 months, which is technically also a Seller’s Market – but there are pockets – with some neighborhoods &  price ranges that are seeing a Balanced Market and others seeing a Seller’s Market.

In Great Falls & McLean, housing inventory is 6 months & 3 months respectively – so technically a Balanced Market. However, note that as you go up in price range, there are HUGE variances and some areas are actually still seeing a Buyer’s Market.

Here are the stats for each city in Northern VA:

CITY # Months Inventory Market
Alexandria 1.6 Seller’s
Arlington 1.8 Seller’s
Ashburn 2.8 Balanced
Burke 1.3 Seller’s
Centreville 1.1 Seller’s
Chantilly 1.3 Seller’s
Dunn Loring 2 Seller’s
Fairfax 1.1 Seller’s
Falls Church 1.5 Seller’s
Great Falls 6 Balanced
Herndon 1.8 Seller’s
McLean 3 Balanced
Oakton 2.5 Seller’s
Reston 1.3 Seller’s
Springfield 0.8 Seller’s
Sterling 1.2 Seller’s
Vienna 1.5 Seller’s

Call The Belt Team at (703) 242-3975 for a detailed analysis on YOUR neighborhood. After all, it’s only the area you live in or WANT to live in that matters!

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Vienna Real Estate – 2003 to 2013 Stats

As we head into the New Year – it’s a good time to look back over the past 10 years and see what has happened in Vienna real estate. Here are the highlights:

HOME PRICES:

Prices are rising. The average price in Vienna rose 9% over the previous year and is higher than it was at the top of the market in 2006.

Vienna Home Prices Rising

NUMBER OF HOME SALES:

Inventory is still a challenge in Vienna and is keeping sales WAY below what they were at their peak. That being said, sales for each of the past two years have been up over the previous year, but rose only 1% over the previous year.

How Many Homes Sold In Vienna VA

DAYS ON MARKET:

Homes continue to sell quickly in Vienna. In 2013, homes sold in an average of 40 days – faster than in any other year since 2005. (Note: Belt Team listings sold in an average of 5 days – AND at a higher percentage of list price than average!)

How Fast Are Homes In Vienna Selling

SOLD PRICE AS PERCENTAGE OF LIST PRICE

Sellers in 2013 garnered a higher percentage of list price than in any year since 2005 – 98.19%. (For example, if a home was listed at $900,000 – the average Seller would have sold it for $883,710. Note that Belt Team Sellers garnered 99.2% of list price. So that same Seller would have sold for $892,800 and put an extra $9,090 in their pocket!)

Vienna Home Sale Stats

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Contact our CEO, Terry Belt about selling your home in Vienna.

Contact our Senior Buyer Specialist, Tom Reilly about buying a home in Vienna.

Vienna Mid-Year Housing Update – 2013

July 4th is approaching and that means we are halfway through the year and it’s time for our Vienna real estate mid-year housing update. So how is the Vienna real estate market faring? Instead of updating you on what has happened in the past week like we usually do, let’s pause and take a look back to the year 2000 and see where Vienna stands in terms of number of home sales, average selling price and average days on market.

The charts below show a year-over-year comparison for January through June for each year from 2000 through 2013. What do we see?

Vienna VA Real Estate Statistics

Average days on market for homes sold in Vienna for the first half of 2013 was 42 days. This is the fastest market we have experienced since 2005 when average days on market was just 21 days.

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Why Vienna Sellers Choose The Belt Team

Vienna VA Real Estate Statistics Homes Sold

Total number of sales in the first half of 2013 was 436 homes. This parallels last year’s sales, which were at 435 at this same time. Sales since 2005 have been under 500 homes per year. If you’ve been following our blog on a weekly basis, this is no surprise. You know that inventory has been VERY low in Vienna over the past few years. And that there is pent-up buyer demand as a result. (Note to Sellers – It’s a GREAT time to sell. Low inventory puts YOU in the driver’s seat!).

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Why Vienna Sellers Choose The Belt Team

Vienna VA Real Estate Statistics Average Sales Price

Average Sales price has trended upward now in Vienna for 4 straight years and was $745,355 for the first half of 2013. This is the highest number in the “new millenium” and exceeds the average price from the peak of the market ($725,522).

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Why Vienna Sellers Choose The Belt Team

(Next Wednesday, we’ll be back to our usual weekly Vienna update. In the meantime, contact The Belt Team for more information. We sell more homes than almost any Realtor in Northern VA. Vienna is our special area of expertise, but we have experience from Ashburn to Arlington, Falls Church to Fairfax. However, it’s only the neighborhood that YOU live in (or WANT to live in!) that matters!

“Changing Lives For The Better – One Family At A Time!”