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The weather is cooling and so is the housing market

by Kathy Rehill, Re/Max Distinctive. October 29, 2021

Buyers are starting to see opportunities as there is a little more inventory than there was this spring as sellers jump in to take advantage of the hot market. We are also following seasonal trends of a slight cooling in the market as families settle into the school year and put off house hunting until next spring. More houses, fewer buyers means that it will be a little easier for buyers over these next few months. It is still a highly competitive market for buyers, but instead of 10+ bids per listing, we are seeing maybe 1 -4 competing offers on “hot” properties. We are also seeing some overpriced homes linger on the market. This means it could be a good time to buy before the spring home buying rush.

Interest rates are still historically low, even if marginally higher than this summer so it is still a great time to buy. Buyers have more buying power now than they may have in this coming spring because interest rates are expected to keep rising. In the inner suburbs of N. VA like Arlington, Falls Church, and Alexandria, experts predict home prices will continue to rise, just at a slower pace. For example, prices are likely to be perhaps 1-3% higher than last year, where as this past spring they were up 8-15% over 2020 pricing in some hot neighborhoods.

All of this means that now is a great time to buy while there are fewer buyers to compete with and while interest rates are still relatively low.

It is also still a great time to sell because savvy buyers want to take advantage of low interest rates. Sellers just need to know that the market is not quite as hot as it was in the spring. Sellers need to work with agents in tune with this changing market, as overpricing a house now could mean more days on market and ultimately a lower sales price.

Click here for an overview of the latest market statistics for Northern Virginia.

Give us a call if you’d like to chat about the housing market, and when it might make sense for you to make your next move.