Real Estate

May real estate numbers dip, but homes are moving faster and selling for more

There weren’t as many homes on the market this May, but those that were available went for more and were under contract within a month’s time.

By Editorial June 15, 2018 at 8:23 am

As housing prices continue to rise and inventory dips it wouldn’t be a stretch to begin to worry about the housing market slipping back into bidding wars and overpriced home sales. But there are factors at play that make the likelihood of this happening slim. First, the Fed has just increased interest rates and they plan to increase them a couple more times this year. And second, the economy is on good footing.

“With our Northern Virginia local economy in a great place regarding employment numbers, we do not think our region’s economy is at risk to overheat any time soon,” said Lorraine Arora, Northern Virginia Association of Realtors chairman of the Board in a press release.

The biggest hurdles agents are seeing happen with their clients, both buyers and sellers, is the adjustments they are facing with low inventory: sellers are sometimes unrealistically pricing homes, and buyers are hesitant to get in on bidding for a home. Agents are focusing on educating their clients, and clients are getting savvy to understanding the value of a home and what they are willing to pay for one.

“Buyers need to prioritize their requirements and make some adjustments of their wish lists to find a home in their price range that checks off most boxes,” says Arora, adding that sellers have to adjust their expectations for a timeline in which their home will sell—”homes are selling in days or weeks rather than in hours.”

Overall, May was a strong month, historically, even though the inventory isn’t as strong as last year. NVAR CEO Ryan Conrad said in a release: “May proved to be a strong sales month despite its lateral movement when compared to May 2017. The 1,110 homes that sold under $500,000 comprised 45 percent of all 2,459 sales. Of homes in that price range, 50 percent were condo or co-op in our Northern Virginia region. Demand from millennials, downsizing baby boomers and investors continue to be strong at that price point.”