Here’s the pulse of the June-July 2016 Northern VA market:
- Contract activity
- Urgency Index of Buyers
- Inventory of Available Homes
- Interest Rates & Affordability
Contract activity was up 3.7% over June 2015. Overall for the first half of the year it was up 4.1%. Average days on market increased to 45 days, up from 42 for June 2015.
The urgency index was almost unchanged – in June 2015 the urgency index was 58.8% compared to 59.1% in June 2016. The total year to date urgency index is 61.9% which is just below the index of 62.5% for the year 2015.
Inventory has dropped – the number of homes on the market was down 9.9% compared to June 2015. Overall supply is at 2.2 months, down from 2.5 months at the end of June 2015.
Interest rates have dropped increasing buying power. 30-year fixed mortgage interest rates at the end of June stood at 3.48%. For the 37th straight month, the mortgage payment for a median priced home ($2,352 in June) was higher than the median rented price ($2,200 in June).
What does all of this mean?? We have conditions for a ‘normal’ market. If you are buying you will be faced with fierce competition for the most updated, commuter friendly homes. If you are selling, you will find picky buyers but they are willing to pay for the features they value – a carefully cared for & renovated property and location, location, location.