Real Estate Market Update - May 2023 Statistics

Are you wondering what is happening in the Northern Virginia real estate market and how interest rates are affecting home sales? At its most recent meeting, the Federal Reserve made the decision to forego an 11th consecutive interest rate increase. However, Wall Street did not find much relief as the Fed indicated that further rate hikes are still on the horizon.

Jerome Powell, the Chairman of the Federal Reserve, acknowledged the difficulties caused by high inflation and reiterated the Fed's strong commitment to reducing inflation back to its 2 percent target. He emphasized that this process would be gradual and require time.

The Federal Open Market Committee expressed its intention to wait another six weeks to assess the outcome of quantitative tightening measures before considering an increase in rates. Currently, the target range stands at 5%-5.25%. The market anticipates another rate hike from the Fed during its meetings scheduled for July 25-26.

I am providing a market update for three counties which include Loudoun County, VA, Frederick County, VA and Jefferson County, WV. The information provided is based on May 2023 data from Bright MLS. If you are interested in seeing market metrics for your neighborhood or an estimate of your home's current value, I would be happy to provide this information via email. You can send me a request at sherry.santmyer@huntcountrysir.com.

In May 2023 the Frederick County real estate market saw many changes from May 2022 and even from April 2023. The following bullet points highlight the stats:

Frederick County May Stats

• Closed Sales were down 31.9% from May 2022 and up 7% since April 2023.

• Average Sold Price was down 1.2% over May 2022 and up 2% since April 2023.

• Average Days on the Market is 34 days, this is 240% longer than May 2022 & 3% longer than April 2023.

Fredrick County May Contract Snapshot

• May 2023 Sales are below 2019, 2020, 2021 & 2022. The lowest May sales in the last 5 years.

In May 2023, Jefferson County's real estate market saw many changes from May 2022 and even from April 2023. The following bullet points highlight the stats:

• Closed Sales were down 30.3% from May 2022 and down 9.5% since April 2023.

• Average Sold Price was down 2.1% over the same time last year and up 8.3% since April 2023.

• Average Days on the Market is 27 days, this is 28.6% longer than May 2022 & 44.9% longer than April 2023.

• Closed & Pending Sales are holding steady. They are lower than t0 2019 and close to 2020. I see Jefferson's market normalizing to pre COVID numbers. There are a lot of new homes being built in Jefferson County, WV. I see this market continuing to grow due to affordability and approximate to Loudoun County, VA.

In May 2023 Loudoun County's real estate market saw many changes from the previous year and even the previous month. The following bullet points highlight the stats:

• Closed Sales were down 28.8% from May 2022 and up 17.8% since April 2023.

• Average Sold Price was up 5.5% over the same time last year and up 5.3% since April 2023.

• Average days on the market is 12 days, this is 100% longer than May 2022 and 25% shorter than April 2023.

• Closed & Pending Sales are incredibly low! The lowest number in 5 consecutive years.

Real Estate Market Overview

The Jefferson County real estate market is back to pre-COVID numbers. New construction in Jefferson County is helping to boost sales. More subdivisions are slated to start in the next two years. I also believe that West Virginia is seeing a strong second home buyer's market. Families living in the DC/MD metropolitan want a vacation home that is not more than 3 hours away. West Virginia is convenient and Wild & Wonderful!

Loudoun County is seeing lower sales volume than the pre-COVID years. The average sold price is higher than last month and last year at the same time. I believe there are buyers wanting to buy but inventory is still low.

Frederick County homes are selling below historical averages and the average sales price is down from last year but up since last month.

In conclusion, I think if you are planning to buy or list, the time is now. The Fed is expected to raise rates in July. If rates go down, buyers can refinance at the lower rate. Low inventory is still a problem. Even amidst this transitional market, homeowners who possess properties in good to excellent condition can still capitalize on their investments and yield profitable results.

If you would like to see metrics for your local neighborhood, or have an estimate of your home's current value, please contact me at sherry.santmyer@huntcountrysir.com.