Home Sale Totals Decline In NoVA As Interest Rates Climb: Realtors

NORTHERN VIRGINIA — Communities across Northern Virginia saw a steep decline in the number of home sales in September, continuing a recent trend in home sales that industry experts attribute in large part to rising interest rates and a limited inventory of homes on the market.

The number of home sales in Northern Virginia in September totaled 1,442 units, down 30 percent from September 2021 and down 17.7 percent from August 2022, according to the Northern Virginia Association of Realtors. The number of closed sales is also down compared to September 2019, before the start of the COVID-19 pandemic, when there were 1,578 closed sales.

While the number of home sales fell compared to August 2022 and September 2021, the median price of a home sold in September rose 4.1 percent compared to September 2021, according to NVAR.

“Market forces are at work, resulting in fewer transactions. However, demand for homes in the D.C.-area is causing prices to still slowly rise, keeping sellers in charge but giving buyers a little more of a voice,” Thai-Hung Nguyen, NVAR secretary/treasurer and a Realtor with Better Homes & Gardens Real Estate Premier.

READ ALSO: NoVA Housing Market Softens But Remains A Seller's Market

NVAR reports on home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. NVAR does not represent Realtors in Loudoun or Prince William counties.

Homebuyers’ demand for mortgages was 38 percent lower than the same week one year ago, according to the latest data from the Mortgage Bankers Association. In fact, mortgage demand, fell last week to the lowest level since 1997, as interest rates continued to rise, CNBC reported.

In September, the time it took to sell a home in Northern Virginia also increased. The average days on the market in September was 25 days, up 19.1 percent compared to September 2021 when it was 21 days.

The median sold price for a Northern Virginia home in September was $619,142, up 4.1 percent compared to September 2021. This is also a significant increase compared to the September 2019 median sold price of $510,000. However, it was less than August’s median price of $627,500, according to NVAR data.

“Northern Virginia’s bustling economy due to tech and government drive demand for housing. Interest rates are making it more expensive to buy homes, but lack of available product is really tempering growth and driving up prices,” NVAR CEO Ryan McLaughlin said in a statement.