The Northern Virginia housing market experienced a notable upswing in September, as reported by the Northern Virginia Association of Realtors (NVAR). Compared to the same period last year, key indicators such as home sales, prices, and overall market activity showed significant improvement.
Market Overview
The NVAR’s report covers home sales across Fairfax and Arlington counties, as well as the cities of Alexandria, Fairfax, and Falls Church, including the towns of Vienna, Herndon, and Clifton. Overall, home sales rose by 4.6%, reflecting a growing demand in the market.
Price Increases and Sales Volume
In Fairfax County, the average home price surged to $859,778, marking an 18.1% increase from September 2023. The median home price also rose, reaching $720,000, up 10.8% year-over-year. A total of 920 homes were sold, which represents a 10.8% increase in sales volume.
NVAR Board President Thai-Hung Nguyen stated, “September was a robust month for our regional real estate market, as consumers had more choices, bought more, and spent more.” He noted that many consumers capitalized on their equity in the current market, while some anticipated that interest rates might not decrease further.
Sales and Inventory Dynamics
The median sold price for homes in September 2024 was $725,000, reflecting an 11.5% increase compared to September 2023. This price growth, coupled with a rise in sales, propelled the total volume of home sales for the month to approximately $1.056 billion, which is a 21.5% increase compared to the same month last year.
Inventory levels remained tight, with a month’s supply of just 1.4 months, slightly higher than the five-year average of 1.3 months and consistent with August 2024 figures. Homes remained on the market for an average of 20 days, an increase of 17.7% from September 2023 and slightly longer than the 18 days recorded in August.
Economic Insights
Ryan McLaughlin, CEO of NVAR, highlighted the positive nature of the market’s growth. “After months of ups and downs, September was a good month with more sales, despite prices continuing their ascent,” he said. He attributed the increase in housing supply as a factor that provided more opportunities for buyers seeking homeownership.
According to the 2023 Housing Economic Impact Report released by NVAR in partnership with the George Mason University Center for Regional Analysis, the residential real estate sector is a vital component of the region’s economy, driving activity comparable to federal contracting and government employment. The residential market generated approximately $17 billion in total regional activity, contributing $10.7 billion to the gross area product and supporting 88,400 jobs with $6.47 billion in salaries, wages, and benefits. Local jurisdictions also benefited from around $313 million in revenue linked to business activities in residential real estate.
Conclusion
The September report from the Northern Virginia Association of Realtors indicates a healthy real estate market characterized by increased sales, rising prices, and a modest uptick in inventory. This trend not only suggests a recovery in the market but also reflects the integral role of housing in the region’s economic stability.
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