And just like that, we are formally in Spring of 2024… although the “real estate spring” kicks in typically around late January/early February in our area. We find that buyers come eager to achieve their goals of purchasing a home with the new year, many beginning shortly after the start of the year, with sellers lagging behind and finally ready to list their home a couple months later. Inventory is FINALLY picking up at this point, and some would even consider this time of year the “sweet spot.”
As we usually see during this time of year, most listings, if turn key, market ready, and priced correctly, are going under contract quickly and receiving multiple offers. For single family homes and townhomes, we are seeing many go for 10-15% above the list price with most, if not all, contingencies waived. Condominium sales have been a little more tame, though still competitive, with offers coming in at or above list. I’ve had plenty of buyers this spring come across a “good opportunity,” so talk to your agent about some pockets of inventory that might offer a less competitive experience.
I can’t speak enough on how important it is for all parties this time of year to have an amazing Realtor to be your advisor throughout the process. Buyers, you need a professional with experience to help you visit a listing quickly, have critical and expert insight to share during a showing, and in giving you advice from the beginning on how to best be equipped to write a strong offer (equally important is working with a reputable and knowledgeable lender). And sellers, you need a professional to give you room-by-room guidance and strategy to make your home market-ready, and to work in your best interest to negotiate the very best offer possible.
Let’s quickly discuss the pros and cons of this time of year for both buyers and sellers.
BUYERS, this time of year will afford you the most options (pro), but will also continue to be very competitive (con) with multiple offers submitted. By waiting until the summer (usually around July), you will see the reverse begin to happen.
SELLERS, this time of year is typically the most competitive, affording you the best terms (pro), but is also the time of year when you will have the most competition with other listings, so your home needs to be market-ready (con). Waiting until the summer will likely again initiate the reverse, although price points tends mirror sales from the spring throughout the rest of the year.
Now, let’s dive into some numbers and charts so we can make some determinations about the current market based specifically on the data.
This chart is active listings in Northern Virginia from the last two years. You can see that this year in particular we started with less listings overall when compared to the last two years. I anticipate when we have the numbers for February and March 2024, we will see that inventory will have climbed to a level similar to last year. THE KEY TAKEAWAY: We do typically see inventory levels climb right around this time each year, which supports what I mention earlier. Active listings tend to decline pretty dramatically around October/November each year and level out around the summer, historically speaking.
This chart tells us month’s supply for single family homes (red), townhomes (green), and condo (yellow) in the Northern Virginia area for the last year. Keep in mind a “balanced” market in our area is closer to 4 months of supply. As you can see, we have remained under 1.5 for the last year, with townhomes never even making it above 1 month’s supply. KEY TAKEAWAY: It is a sellers market, and buyers have limited inventory to choose from. This is why it is SO important for buyers to be as prepared as possible.
As a final note, I want to at least make a mention of the recent lawsuit settlements that have been gaining quite a few headlines in the news. To be honest, I am very disappointed in the news coverage, which includes a lot of inaccuracies and lacks the perspective from a seasoned real estate agent. Real estate commissions haven’t regularly been 6% in quite a while (which includes the entirety of my career), and the commission being offered has always been negotiable both in a listing agreement and a buyer representation agreement. We will have to see how everything evolves once the new rules are signed and implemented, likely in July, but my take is that it is likely that sellers will still offer some compensation to ensure they have the maximum amount of buyers who can afford to purchase their home. Just reach out if you want to have a more thorough discussion on this topic.
Wishing the best of luck to all of the sellers and buyers out there ready to take the next step in their real estate journey. If you need a great agent to be your Realtor, don’t hesitate to reach out!
Alli Collier 