Northern Virginia Real Estate Market Update
What trends have you been noticing in the Northern Virginia Real Estate Market? If you can say higher rents, lower interest rates on mortgages, lower days on market, higher price points and multiple offers… you are right on the money for your Northern Virginia real estate market trends! In May we saw national increases as well as regionally, which is incredible. This is good for Northern Virginia’s real estate market.
In my personal experience over the last quarter, I have been in more multiple offer scenarios than ever. Sellers are even still asking for higher earnest money deposits when receiving offers to have that show of good faith. I haven’t personally been dealing with escalation clauses, because none of my particular clients want to deal with that and I don’t blame them! Homes are selling rather quickly, so when my buyers are looking, they are having to make their decisions sooner than most of them would like to do to the nature of the market inventory. With the lack of desirable property in the price points that most buyers are looking in, there are more competitive offers being placed. The inventory is the lowest it has been since 2005…
Seeing the buyer perspective can really give the seller the glimpse they need into the seller’s market situation. In Arlington especially, I am seeing that sellers that have their homes buyer ready are seeing the multiple offer scenarios within the first 5-10 days on market. Having the home ready for market before placing it on the MLS is an imperative step for a seller right now to keep interest up. Pricing the home accurately is another smart move. If market demand continues to increase, as well with low inventory, prices will continue to increase per the Real Estate Business Institute.
Rents are actually rising in Northern Virginia. There are also less rental properties available in the more desirable markets currently; however, in Arlington there are a number of new multi-family developments coming on the market soon. The interesting thing about renting in Northern Virginia is that most rental rates are more than what a mortgage would be for a larger space. This is something to consider when you know you will be living in the area for more than 3 years. Would it make more sense to consider buying if you will be paying more to rent in the long run?