June 2024 Housing Market Update

June 2024 Housing Market Update: What’s Happening in Central Virginia

Hello, Central Virginia! Are you curious about the latest trends in our local housing market? You're in the right place. In this blog post, we’ll dive into the latest updates, providing both good and bad news for buyers and sellers. Read on to find out what’s happening in the housing market and how it affects you.

The Good News: Inventory is Rising

Let's start with some positive news. We’re seeing a significant increase in housing inventory across the country, and Central Virginia is no exception. The amount of available homes for sale has gone up by a staggering 35% compared to May of last year. This is a huge relief for potential homebuyers who have faced tight market conditions over the past few years.

This increase in inventory means that buyers now have more options to choose from. The current levels of available homes even exceed those seen during the pandemic years from 2021 to 2023. If you’ve been waiting for a better selection of homes, now might be a great time to start your search.

The Bad News: Still Below Pre-Pandemic Levels

However, it’s not all sunshine and rainbows. Despite the uptick in inventory, we’re still well below the levels we saw from 2017 to 2020. This shortage of homes is driving up competition and keeping the market tight. The demand for housing remains strong not just in Central Virginia, but nationwide. The limited supply means that even with more homes available, we’re still not meeting the current demand. This imbalance continues to put pressure on buyers and keeps prices high.

Central Virginia Market Snapshot

Let's zoom in on Central Virginia to see how the market is performing:

  • Median Home Price: The median home price in Central Virginia as of May 2024 is $442,000. This marks a 5.8% increase from May of last year and a 9.5% jump since the beginning of the year. If you’re a homeowner, this is great news as your property value is likely increasing.

  • Median Days on Market: Homes are selling incredibly fast, with the median time on market dropping to just 6 days. This rapid turnover indicates a hot market where buyers need to act quickly to secure a property.

  • Median Percentage of Asking Price: Sellers are receiving, on average, 101.1% of their asking price. This means homes are not just selling at their listed price but often for even more, reflecting the high demand and competitive nature of the market.

Market Insights: What’s Driving Trends?

One of the interesting trends we're seeing is a significant shift towards new construction. Due to the high demand and limited existing home supply, new construction homes are becoming a key player in the market. Remarkably, one in three homes currently for sale across the United States is a new construction home. Builders are taking advantage of the current market dynamics and meeting the demand where others cannot.

Tips for Sellers: Make the Most of This Market

If you're thinking about selling your home this summer, here are some crucial tips to maximize your success:

  1. List Before July 19th: With the school year starting on August 19th in Central Virginia, many families will want to move and settle in before then. Listing your home before July 19th will give buyers enough time to close and get into their new homes before school starts.

  2. Start Preparing Now: Preparing a home for the market always takes longer than expected. Start the process now to ensure your home is in top condition and ready to fetch the best possible price.

  3. Get a Home Inspection: Before listing your home, consider getting a professional home inspection. Identifying and fixing issues early can make your home more appealing to buyers and prevent potential deal-breakers during the selling process.

Tips for Buyers: Navigate the Market Wisely

For buyers, the current market presents unique challenges and opportunities. Here’s how you can make the most of it:

  1. Act Fast: If you want to move before the new school year, you’ll need to be under contract by July 19th. This tight timeline means you need to start your home search now and be ready to make quick decisions.

  2. Seize the Summer Opportunity: The summer months often see a slight decrease in demand as many potential buyers are distracted by vacations and other activities. This could be your best opportunity to find a home without as much competition.

  3. Prepare to Offer Over Asking: Given the competitive market, be prepared to make offers that are above the asking price, especially in desirable areas. Understanding the market and being ready to act quickly can make the difference between securing your dream home or missing out.

Conclusion

That’s it for our June 2024 housing market update for Central Virginia. The market is dynamic, with rising inventory offering hope for buyers, while still facing challenges due to high demand and limited supply. Whether you’re looking to buy or sell, staying informed and acting strategically will help you navigate the current housing landscape successfully.

If you have any questions or need more information, feel free to leave a comment or send me a direct message. Thanks for reading, and I look forward to updating you again next month!

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