The number of active listings for sale in Northern Virginia is down 33% from a year earlier, which had also been down 33% from the previous year’s level.
The chronic shortage of homes for sale is creating multiple offers and a possible return to bidding wars on many properties. With spring market directly in front of us, expect rising prices in Northern Virginia, with possible price spikes in certain towns and neighborhoods. This is all occurring despite tougher mortgage loan standards which has reduced the potential pool of home buyers.
Many sellers have been holding out for higher prices. Their day is coming in the near future, if not here already. As prices move higher entering spring, I expect more listings to surface, putting the supply/demand situation closer to balance, albeit, at higher price levels.