August 23 — Nationally, home sales slumped 16.6% while Northern Virginia sales fell 20 percent compared with July 2022. The median prices nationwide were up 1.9 percent while prices jumped 6.3 percent in the Northern Virginia region from the previous year, according to the Northern Virginia Association of Realtors® (NVAR).
“Our region’s sales dropped more than the country as a whole, but we continue to experience higher price escalation than the overall market since our area has very low inventory,” explained NVAR CEO Ryan McLaughlin. “Factors for both are continued low inventory and high mortgage rates which are affecting first time homebuyers in particular since they are competing with repeat homebuyers who have the advantage of utilizing their equity gains.”
Across the nation, unsold inventory sits at a 3.3-month supply, up from 3.1 months in June and 3.2 months in July 2022. In the Northern Virginia region—right outside the nation’s capital, supply was at 1.0 months, down from 1.1 months in June and 1.23 months in July 2022.
Mortgage rates that topped 7 percent contributed to the tight supply of housing everywhere and continued to push prices up. Nationally, the median home price in July was $406,700, an increase of 1.9 percent from July 2022. In the Northern Virginia region, the median sold price for a home in July 2023 was $691,000, growing 6.3 percent from July 2022.
Cash continued to be a popular choice to pay for homes, propelled by high interest rates as well as buyers tapping into proceeds from selling their current properties. Nationally, all-cash sales accounted for 26 percent of transactions in July, up from 24 percent in July 2022. In the region, cash sales accounted for 19 percent of all sales in July, up from 15 percent in July 2022.
NVAR recently released a mid-year update to its NVAR Region 2023 Residential Real Estate Market Forecast. The forecast noted that a continued lack of housing inventory, pent-up buyers’ demand creating a sellers’ market, and positive economic conditions peppered with mounting risks may be in store for the Northern Virginia housing market for the remainder of 2023. The update was created in cooperation with the Center for Regional Analysis at George Mason University (GMU-CRA). The Northern Virginia Association of Realtors® reports on home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon, and Clifton. Read more about the NVAR region housing market at NVAR.com/public.
