The number of homes for sale in todays Northern VA real estate market is very important to how it performs. While inventory levels have continue to sit near historic lows for many months, there are indications we may have hit the lowest point of inventory. Deputy Chief Economist at First American, Odeta Kushi, recently said of our supply challenges:

“It looks like inventory may have hit a bottom (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4.”

The graph below shows levels of inventory rising since the beginning of the year:

We’re still far from a balanced market, which is a 6 months’ supply of homes on the market for sale. With this said, we are seeing a slow but steady increase in home listings coming on the market.  This leaves many buyers and sellers in Northern VA wondering the same thing: what does that mean?

Buyers: More Options, so It’s Time To Act

If you’re a future buyer, more inventory coming to market is a very welcome sight. More listing supply means more options and less competition, which could mean fewer bidding wars.

The latest Monthly Housing Market Trends Report, says supply levels are continuing to increase, which is different from the typical summer market:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”

If you’re not jumping into the market because of concerns of having trouble finding your next home, this news should give you the hope and motivation. Finance experts project mortgage rates will begin increasing, which will make purchasing a home in Northern VA less affordable as time passes. You can still capitalize on today’s low interest rates, so maybe its time to jump in and start your serious home search..

Sellers: Low Supply Isn’t Over Yet, so Now Is the Time To Sell

If you’ve been putting off selling your home, you shouldn’t wait much longer. The year’s month-over-month gains in available listings for sale have begun to help buyers, but we’re still very much in a sellers’ market in Northern VA.

Even with the number of homes for sale rising, we’re still well below the supply levels we’ve seen historically:

More homes are coming to market right now, and more are expected in the coming months. Selling your house this summer gives you the chance to get ahead of the competition and maximize your sales potential before more homes are put up for sale in your neighborhood.

Bottom Line

More home listings means more options for buyers and more competition for home sellers. Whether you’re looking to buy or sell, let’s connect today to discuss your options and why it’s a exceptional time to make your move.