If you own or plan on purchasing a home in Northern Virginia during the coronavirus pandemic, this may give you some insight into the local real estate market.
We’re in our fourth week of watching COVID-19’s impact on the Northern Virginia real estate market. The numbers are still showing a negative effect on the leading indicators and pointing to signs that the market is slowing down.
For the third consecutive week, we’ve seen a decrease in new and pending listings while also seeing a huge increase in the number of withdrawn listings.
- New Listing numbers are down.
- Pending home sales are down.
- Withdrawn listings are up once again.
The number of new listings in Week 15 of 2020, when compared to the same week in 2019, is down 44.7%. That means fewer homeowners are listing their properties on the market.
There also appears to be fewer buyers in the market as we saw a 33.7% drop in the number of pending listings year over year.
The last number, which we saw the most significant change in, is withdrawn listings. A listing is withdrawn when a homeowner decides to remove their home from the real estate market without selling it. The number of withdrawn listings is up for the third straight week, as homeowners with or without the assistance of their real estate agents continue to remove their homes from the market.
In Week 15 of 2019, there were just two withdrawn listings. This year there were 107 withdrawn listings in the same week. Is this in response to the shelter in place order, practicing social distancing, or were these individuals impacted by the market is anyone’s guess at this time?
What does all this mean?
With an increase in withdrawn listings and the decline in new active listings, the pool of homes available to buyers continues to shrink. In a healthy market each week, new listings are added to the market while listings are taking off the market via homes going under contract at roughly the same rate. What we see now is a second factor affecting the number of available homes, withdrawn listings. Now buyers have even fewer homes to choose from as sellers continue to remove their properties from the market.
Sadly, buyers will continue to see a lot of competition as the number of available homes continues to take a hit.
Prices are holding steady despite the drop in the number of pending home sales. We are still experiencing a seller’s market, given the low inventory currently available.
Investors will likely stay on the sidelines. With decreased inventory, there are few deals to be had unless they are looking at off-market properties.
What does the data tell you about the market? Post your thoughts and takeaways in the comment section. If you’re thinking about buying or selling and need guidance give me a call at 703-539-2053 or email me to set up a consultation.
About the Author
The above article was written by Abraham Walker, Your Northern Virginia Real Estate Agent, helping clients market their homes to achieve high sales with a quick closing time is my main priority. He’s the co-founder of Ask A Walker and can be found on YouTube, Facebook, and HERE on this blog.
Data Source: Bright MLS Statistics calculated on April 9, 2020