Real Estate Blog

2023 Northern Virginia Home Sales Down Overall from Previous Year but Lowering Rates Point to a Better 2024, Reports NVAR

December Continued Trends—Sales and Inventory Low

FAIRFAX, Va. (January 12, 2024) – Like December, 2023 Northern Virginia home sales overall declined from 2022, driven by high mortgage rates and scarce inventory, while prices continued to climb. The forecast for 2024 is looking up as declining mortgage rates are expected to bring some relief

“December home sales data reflects much of the whole year as real estate continues to seek a new normal following the pandemic,” explained NVAR Board President Thai-Hung Nguyen

Better Homes & Gardens Real Estate Premier. “We anticipate that 2024 will bring more choices as lower rates coax more sellers to rejoin the market. This would be positive news since demand exists.” 

For 2023, the total number of units sold was 15,958, down 21.8% compared to 2022 when the total number of units sold was 20,398. The sold dollar volume in 2023 was also lower, down 17.8% to $12,516,181,258. The median sold price in 2023 was $680,000, up 4.62% compared to 2022 when the median sold price was $650,000

Capping off 2023, December followed the same script—soft sales, low inventory, and higher prices. Sales were down 16.3% compared to December 2022. Supply was still a factor with months’ supply of inventory for December 2023 at only 0.74 months, down 4.9% from December 2022. This was also less than November 2023 when the supply of inventory was 1.05 months. The average days on the market in December 2023 was 24 days, down 25% from December 2022, but up from November 2023’s 20 days. With few options, the median sold price for a home in December 2023 continued upwards, reaching $675,000, up 12.5% from December 2022.  

“2023 was a unique year. Towards the end, we started seeing smaller monthly declines in sales, which is good news. As people adjust to higher rates—and as they drop some, I expect to see more thawing in the marketplace and smaller monthly home sale declines, but consumers should be prepared for home prices remaining high,” said Ryan McLaughlin, CEO, NVAR

PRINCE WILLIAM COUNTY DECEMBER 2023 MARKET STATISTICS

MANASSAS, VA. December 11th – Bright MLS, Smartcharts, a leader in real estate data and insights releases the latest market statistics, providing a comprehensive snapshot of the local real estate landscape. Despite facing challenges, the market has demonstrated its ability to adapt, with key indicators showcasing interesting dynamics.

In December 2023, the total number of closed sales reached 358, reflecting a decrease of 29 sales or 7.5% compared to the same period in 2022. This decline, while significant, suggests a measured adjustment in the market as it responds to various factors.

A standout feature of the December housing market is the median sold price, which surged to $528,000. This represents a substantial increase of $78,000 or 17.3% compared to December 2022. The notable uptick in median prices underscores the demand for real estate in the region and highlights the economic dynamics at play.

The inventory of available properties witnessed a noteworthy contraction in December 2023. Active listings decreased by 117, amounting to a 30.66% reduction compared to the same month in the previous year. This reduction in inventory could contribute to a competitive market, potentially influencing pricing dynamics.

A key metric for assessing market efficiency, the average number of days on the market saw a decline in December 2023. Properties spent an average of 22 days on the market, indicating a decrease of 8 days compared to December 2022. This acceleration in the pace of transactions may be indicative of a market that is responsive to buyer demand.

In summary, the December housing market in the Prince William region presents a multifaceted picture. While closed sales experienced a decline, the increase in median sold prices and the reduction in active listings suggest a market that is adjusting dynamically. The shortened days on market further emphasize the agility of the market in responding to prevailing conditions.