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A key factor in assessing the real estate market for a buyer or seller is the number of houses that are available for sale during a particular period. We often hear the term "low inventory" in relation to the Northern Virginia (NoVA) real estate market. The public also "sees" what appear to be few(er) houses for sale when searching online.
Putting the lack of housing inventory in our Market into context is helpful to understanding the best course of action, whether you are a buyer or a seller.
For example, March is in the heart of the "Spring Market" each year. The following graphic I created shows that in Fairfax County, the number of newly listed houses for sale in March 2024 was nearly 50% less than the number in March 2023. March 2024 had 15% fewer new listings than one year ago.
April 2023 new listings were down 51.8% from April 2022. Seems unlikely that the April 2024 new listing numbers will bring relief to the current low house inventory situation. Stay tuned.
In the NoVA real estate market, I view the "Supply" level as the single most important factor for a buyer or seller to consider, even more so than the current mortgage interest rate or economic environment. Even in a less-than-optimal interest rate or economic environment, there will still be a significant number of buyers in Northern Virginia looking for a house to be their new home.
The number of houses that are available for sale sets the tone for the level of competition, which has an upward push on house valuation. In the low inventory NoVA market, a buyer must put themselves into the best position to successfully win their home of choice.
The choice of real estate professional is key to this successful outcome, as the quality, credibility, and experience of your agent will have a decisive impact upon your home buying outcome.
