Home Sellers Faced With Misconceptions Behind Drop In NoVA Home Sales

NORTHERN VIRGINIA — Current real estate market conditions in Northern Virginia remain favorable for home sellers, despite higher interest rates and talk about a housing bubble, according to a local real estate expert.

The local housing market has had steady year-over-year increases in home prices for nearly a decade, and buyer demand has been and remains extremely high.

But the number of home sales in the area has dropped significantly over the past two years. Rather than a housing bubble or interest rates, though, the reason for the lower number of home sales in Northern Virginia is lack of inventory, according to Rob Traister, associate broker at RE/MAX 100 in Springfield.

A proliferation of bad information about the market is exacerbating the problem, Traister added.

Inventory in Northern Virginia is the lowest it has been in decades, with the number of homes sold in February down 26.4 percent from the previous year. At the same time, the median sales price is up 1.3 percent over 2022, and nearly 8 percent over 2021, according to the Northern Virginia Association of Realtors.

Despite this data, potential sellers are under the misconception that current market conditions are unfavorable for selling. Nothing could be further from the truth, according to Traister.

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With high demand and very limited supply, Northern Virginia sellers are in an excellent position to command top dollar for their homes, Traister noted.

“Just today, I had conversations with two different people who told me they thought the market was bad for sellers because interest rates are high,” he said. “They were surprised to hear that rates have dropped quite a bit recently, and that many recent listings in this area are selling within a few days, and at above their list price.”

Many homeowners fear they will not find a suitable replacement home in the current competitive market, leading to a vicious cycle of low inventory.

However, Traister assures sellers that they have options. Buyers in the current market are often willing to give sellers rentbacks after the settlement date — at little or no charge — to give them time to find a new home and get moved. With cash in the bank from their home sale, sellers are in a much stronger position to make a competitive offer without a home sale contingency attached.

Traister is encouraging homeowners to take advantage of the high demand and low supply to get the best possible price for their homes.

"I tell my sellers that I’m so confident in the strength of my marketing plan that if they don’t get a full-price offer — or better — in the first week after the house goes active, I’ll reduce my commission," he said.

Some sellers may feel intimidated by how much work they need to do to their homes to get them ready for market.

However, Traister noted that most homes usually need only some basic decluttering, some landscaping and a coat of paint. "An updated home does usually get the best price, and for sellers who want to go that route, I have a program that allows them to make those updates before going on market and not pay for them until settlement," he said.

Contact Rob Traister at RE/MAX 100 to learn more about the local real estate market.

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