I decided to provide an update based on the activity in November to answer this question for the overall Northern Virginia market. The below chart provides a comparison of median sold home prices for November YoY and for Year to Date (YTD) thru November. (click on image to view)
Compared to last year, the median sales price is higher 3.5% and for the year home prices are higher 1.7% for all of Northern Virginia. As you can see, the biggest increase in median sales prices in the NoVA region year to date were from Fairfax City (8.1%) and Falls Church city (12.9%).
With overall sales prices higher year over year, there were more homeowners that decided to list their properties in 2014 compared to last year. We can see this as the active listings has increased substantially compared to 2013.
Active listings are up 37.5% compared to last year for Nothern Virginia with Loudoun County active listings growing 49.6% year over year.
With the increase in active listings, there has also been an increase in the months of supply/inventory in the market this year.
Months of Supply: the # of months it takes to sell all of the current active listings based on the current sales trends, assuming no additional inventory hits the market.
As you can see from the above chart, the inventory supply peaked in September and dropped a bit in November and it would currently take a bit over 3 months to clear the housing supply in Northern Virginia assuming current activity levels. Why is this important? Well, as the inventory levels increase, the market shifts to more of a buyers market and as the supply decreases the shift is to a sellers market.
If you are in the market to purchase a home, you can search Northern Virginia real estate here. If you have any questions on the market activity in Northern Virginia, please reach out to us (contact box on the right sidebar).
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