So how is the market? The never ending question!
The market is shifting down
The market is shifting and in on the downward curve. It’s moving in the buyer’s favor, but don’t make any conclusions too fast. The inventory is still very low – so don’t expect any killer deals or an infinite amount of homes to choose from.
So what’s happening with the numbers?
The number of available home listings in Arlington, VA in July was the same as last year – (461 2022 vs. 480 2021), BUT the demand – the New Pending – was 25% down (214 vs. 285) So very slowly the inventory will start to build up and the market is showing the signs of slowing down.
Also the sales of homes in Arlington in July 2022 vs. 2022 was down 28% (245 vs. 342) – that is a very large shift.
The average sales price and median sales prices were up, but that will start shifting as well. Sellers aren’t usually ready to drop prices quickly when the market slows, but it’s coming.
Here is the chart for home inventory – we measure it by months of supply (if no new listing come on the market it would take x amount of months to sell existing inventory.) A couple of things I wanted to point out – single family home inventory is at 1.56 months – the highest number since Nov, 2019 (1.58) – so there are more homes to choose from than there has been in the last almost 3 years. Caution though – 1.58 is still not enough – we need at least 2 months to have something resembling a balanced real estate market in Arlington, VA. Regardless of the increasing inventory – we have not hit the bottom and probably won’t for a while – so it’s a great time to sell if you are planning to do so in the near future.
The market is shifting, but Arlington is going to weather this well. We have too much demand, too many jobs and people with money. First time home buyer’s market will probably suffer the most due to the increased interest rates, but even then – I don’s anticipate any drastic market adjustments. If you’d like to get a more personalized market analysis on your home – you should contact me! Till next month!