If you're in Northern VA and considering a move, a pressing question might be: Why Are So Few Homes For Sale in Northern VA? While waiting for more options might seem like a good idea, it might not be the most strategic move. Here's the breakdown.

The low number of homes for sale on the market isn't just a current issue; it's been a persistent challenge in NOVA for years. Mainly caused by three things we will discuss.

Under-building In Northern VA

A significant factor behind the low inventory is the insufficient number of homes constructed after the 2008 subprime collapse . Historical data on single-family home construction over the last five decades are below:

For 14 year straight, the number of homes built fell short of the historical average as population grew. This under-building has led to a notable inventory gap. Even though current home construction now aligns with the historical averages, the longstanding inventory issue won't resolve instantly as it will take years to catch up.

Low Mortgage Rates Dilemma

Today's higher mortgage rates add to the inventory challenge. The current prevailing mortgage rates have created a "lock-in" effect. Many homeowners hesitate to sell, fearing they might end up with a much higher rate than their existing one. Currently over 70% of mortgages have an interest rate below 4% . Here is a break down of the interest rate for all current mortgages:

It's crucial for these homeowners to balance their financial considerations with their housing needs.

Media Misinformation Fuels Apprehension

The media has played a role in amplifying low inventory. Sensational headlines predicting housing crashes or drastic price drops might have impacted decision-making of sellers who were on the fence. As Jason Lewris from Parcl notes:

"In the absence of reliable, current data, real estate choices are increasingly influenced by fear, uncertainty, and doubt."

Such narratives deter potential sellers, further straining the inventory. However, with J Group Realty, you can differentiate between facts and sensationalism and debunk these common myths.

What This Means for You

The implications of today's low inventory vary based on whether you're buying, selling, or investing.

For Home Buyers in Northern VA : The limited homes on sale necessitate a thorough exploration of all options, spanning different areas of NOVA and property types. Joey Remondino and J Group Realty's expertise ensures you discover the home that aligns with your requirements, even suggesting a wider search if needed. Additionally, make sure that you know all the steps required to make an effective and competitive offer.

For Home Sellers in Northern VA: The current inventory scarcity can be an opportunity, making your property more noticeable. Joey Remondino and J Group Realty can guide you on the benefits of selling under these conditions and explain why now might be the perfect time to sell. And if you're also in the market to buy, we keep you updated on the latest listings in Northern VA, helping you spot your next dream residence.

Investing In Northern VA Real Estate: There are opportunities in every market if you are playing the long game.

Bottom Line

The limited homes available for sale is a longstanding issue, influenced by various long-term and immediate factors. If you're considering a move in Northern VA, partner with J Group Realty. Benefit from our insights on the local housing inventory and make an informed decision. Remember, there are advantages to homeownership beyond the price tag, connect with J Group to find your path to homeownership!