Most of the Northern Virginia region saw a slight increase in median sale prices for homes in May, according to the Long & Foster Real Estate Market Minute report. The only exception was Alexandria City, which saw a decrease of 8%. The rest of the region saw a modest uptick, with Arlington County showcasing the highest increase with a 9% rise. Inventory continued to fall throughout the region. Alexandria City saw the biggest fall with a 59% decrease, followed by Arlington County with a 51% drop. The number of homes sold also fell in most of the region besides Prince William County which saw a 10% rise. 

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

“Inventory continues to shrink everywhere, especially in the Northern Virginia area,” said Larry “Boomer” Foster, president of Long & Foster Real Estate. “Even though inventory keeps falling, you don’t see huge price appreciations – there is low-single-digit to flat median sale price increases.”  

Despite the slow start to the year, the real estate market has been solid and steady, especially considering how the markets tend to slow down after Mother’s Day. “It seems we’re experiencing a later spring market than normal, so we can possibly expect a higher June and July for new contracts,” Foster said.  

Foster reiterated that the market is particularly strong right now, emphasizing the high competition and low 30-year fixed mortgage rates. In fact, mortgage rates are the lowest they’ve been in two years, so affordability is incredibly strong at the moment, he said.  

Addressing the recent resurgence in home flipping, Foster said, “Home flipping is an attractive option for people to make quick money. As long as home prices continue to appreciate it’s going to continue to be a trend.” 

Something that has caused home flipping to increase is the popularity of iBuyers – real estate companies that buy homes directly from the seller. They allow a homeowner to sell their property quickly without the need to make modifications or get it show ready. While this is a model where they can make significant margins, Foster cautions that they normally offer 9% to 20% less than the market value of a home.  

Foster also spoke about the rise of mortgage closing scams where criminals contact homebuyers by email in an effort to have them wire their funds for closing costs and down payment to a fraudulent account. “It’s about awareness for consumers,” he said. “If they receive an email asking them to wire closing costs, they should always double-check with their real estate agent or someone at their financial institution by phone or in person before taking any action.” The Consumer Financial Protection Bureau has more information about protecting yourself.

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.