Local Market Update

Peter Leonard-Morgan
Oct 14, 2022
2 min read

There's no doubt about it, the real estate environment is in a different place today compared with a year ago, but is it a bad thing?

If we take a look back, the dreaded COVID years of 2020 and 2021 created an unexpected boom in our industry, to put it lightly. In early 2020, when masks and lockdowns and latex gloves and shoe covers were de rigueur, we all assumed that our businesses would come to a grinding halt, however, in Virginia, real estate brokers were deemed an essential service and we were allowed to continue to do business.

Gradually, but pretty quickly, we saw folks packing up and moving away from big cities in search of open space and fresh air. As a consequence, property prices began to escalate while mortgage rates tumbled to record lows in the 2.5% region.

It seemed that these increasing home prices did not deter buyers, in fact for two years, most properties listed at then realistic prices went under contract within days, and following multiple offers with increasingly escalating offer prices but with correspondingly fewer, if any, contingencies.

We have all witnessed the significant rise in inflation which has caused mortgage rates to more than double in just a few months, meaning that buyers' affordability has been dramatically reduced. So here we are, with a market which has corrected, yet prices are still far higher than they were two years ago, and inventory remains very low.

For buyers and their agents, respite is here because they are no longer fighting to win with their offers against multiple other offers, waiving important contingencies such as home inspections and well and septic.

Loudoun County Market Update

The panel below, courtesy of the Dulles Area Association of REALTORS®, provides a nice market update and snapshot as to the market position in Loudoun County as compared to one year ago, however it's particularly helpful to look back three years, to 2019 (second panel below), to get a more realistic comparison. What we see here is a drastically lower inventory (660 listings -v- 935 in September 2019), and a median price today of $639,995 compared with $495,000 in September 2019.

Loudoun County September 2022 Market Snapshot — September 2022 Market Snapshot

Loudoun County September 2019 Market Snapshot — September 2019 Market Snapshot

This lack of inventory in a market where there is a high demand for property is fueling a continued healthy market, but with rates at around the 7% mark, we are seeing more negotiation, longer time on market and, happily, we are back to a position where buyers are able to properly do their due diligence with home inspections, well and septic inspections and retaining financing and appraisal contingencies.

View the full DAAR Market Reports

Whether you are considering buying or selling in Western Loudoun, Great Falls, Middleburg, or beyond — or simply wish to stay informed about this remarkable market — I would be delighted to hear from you. Reach me directly at (443) 254-5530, or use the Contact Form on my website. My approach is straightforward: clients come first, always.