The market statistics for last month showed the usual slow down of activity we normally anticipate in December. This is attributed to several factors including the Holidays, uncertainty about the Omicorn variant and an increase in interest rates.
The low inventory that existed through most of the year continued through December with a contract ratio of 1.39 pending contracts per active listing – giving sellers a strong advantage over willing buyers. New listings were down over 20% compared to December 2020 with 1,088 new listings last month. Active listings were more than 39% below active listings in December 2020.
The low inventory resulted in driving up homes prices. The average home sales price increased in December by 4.1% to $707,910 compared to $767,724 in December 2020.
The year ended strong for the Northern Virginia market. A total of 26,157 home sold last year which is a 17% increase over 2020 and the highest yielding year of homes sold since 2005.
What does this mean for buyers and sellers?
We anticipate last year’s robust market to continue in 2022. And With low inventory carrying into 2022 buyers should expect to see homes with multiple offers with escalated prices. We are already seeing that in January.
Buyers should have funding lined up in advance. You need to come to the table with a pre-qualification letter for a seller to even consider your offer. And to have a winning offer Buyers should also be prepared to consider limited or no contingencies and expect to pay at or above asking price.
Although interest rates have gone up a bit since the Fall, they are still lower than they have been in a long time – so don’t let that hold you back.
Sellers should plan now to get their house ready for market with a solid marketing plan. Homes that are well prepared will sell quickly. Contact the FOCUS on NoVA team to find out what updates will give the highest return on investment.
