Fall 2023 - Rare opportunity for buyers & sellers in Northern Virginia?

by Josue Ruiz

The US housing market is experiencing a cooling-off period, and this presents a unique opportunity for those looking to buy or sell homes in Northern Virginia.

According to Zillow, a trusted real estate listings site, there has been a noticeable increase in price cuts for homes in recent weeks. In fact, the percentage of home listings with price reductions reached 9.2% in the week ending September 16th, surpassing the 7.9% rate from the same period in 2019.

This trend can be attributed to several factors coming together to create a more favorable market. While the past year saw soaring home prices due to limited inventory, the supply has started to stabilize, with new home listings increasing by 4% month-over-month in August.

Additionally, demand has slightly eased due to higher mortgage rates, which reached a 23-year high of 7.31%.

Zillow's Senior Economist, Jeff Tucker, sees this as a golden opportunity for determined buyers who have the budget to accommodate the recent jump in mortgage rates. He states, "This fall is looking more and more like a sweet spot: There are more motivated sellers and more active listings overall than any time since last December, improving buyers' chance to find the right fit."

This improved affordability is a welcome relief for buyers who have been struggling in one of the nation's most unaffordable housing markets. However, experts caution that significant improvements in affordability may not occur until mortgage rates decrease, and that's not likely to happen soon. Redfin estimates that rates may only ease to around 6% by the end of 2023.

Despite the current cooldown, Zillow economists project home price increases through the first half of 2024, with the possibility of a 5% jump in home prices by August 2024.

This changing landscape offers a valuable window of opportunity for both buyers and sellers in Northern Virginia. If you're considering a real estate transaction in this region, I encourage you to seize this moment.

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