Home sale prices ticked upward in much of the Northern Virginia region in July, according to the Long & Foster Real Estate Market Minute report. Most of the region experienced a rise in median sales prices ranging from 1% to 6%. The only exception was Alexandria City, which exhibited an 11% decrease. The number of homes sold declined in many areas, though it increased by 6% in Fairfax County. Inventory continued to fall throughout the entire region with Arlington County and Alexandria City both demonstrating a 58% descent. Days on market was low last month, with most homes selling after a month. 

The Long & Foster Real Estate Market Minute report for Northern Virginia includes the city of Alexandria, and Arlington, Fairfax, Loudoun and Prince William counties.
 

 

“Across the board in the greater D.C. metro region there are several places showing positive units sold, one being Fairfax County,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. This is particularly interesting when considering the depleted inventory levels, as it would be expected for units sold to be down. “However, it could be a reflection of interest rates coming down so dramatically in July and into August,” he said. 

“You can see the Amazon effect continuing in Arlington County and Alexandria City,” Foster said. With inventory levels continuing to contract, the median sale price not rising significantly is unusual. Foster believes this is due to the type of inventory that’s being sold, mainly lower-priced, smaller attached homes and condos versus bigger, higher-priced estate homes.  

Explaining the inverted yield curve that is causing many to worry about an upcoming recession, Foster pointed out that an inverted yield curve does not always lead to a recession, such as with the dot-com bubble in the late 1990s to early 2000s. In the past it came about when the Federal Reserve raised rates to try and hold off inflation. This time it was caused by the low yield on the 10-year treasury bond since too much money was coming into U.S. Treasury, Foster said.  

Should a recession come, it would not be caused by what led to past recessions. The last recession in 2008 was due to mortgage-backed securities giving out loans to people who could not pay them back. Current regulations from banks and mortgage companies would prevent that from happening in the future. 

For those thinking of selling their home, now would be a good time to do it since demand for homes are so high. Consumers who are worried about being able to find a new home due to low inventory levels could put a contingency in the contract that will “protect them by making the sale contingent on a new home being bought first.” This may make the contract less attractive to prospective buyers, however it’s not unheard of and many will still accept it. 

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.