Blame a lack of inventory, blame rising prices and interest rates, or credit the very hot home sales market at the start of 2021, but home sales in Northern Virginia’s top five jurisdictions posted a cumulative decline of 15.5% in the first six months of 2022 compared to a year before.
A total of 18,372 homes were closed between January and June, compared to 21,706 during the same period in 2021, according to Bright MLS figures analyzed by the Sun Gazette.
Year-over-year sales were down in each of the five jurisdictions:
• Sales fell 5.5% to 1,538 in Alexandria.
• Sales fell 9.4% to 1,594 in Arlington.
• Sales fell 15.8% to 8,156 in Fairfax County.
• Sales fell 20.9% to 3,336 in Loudoun County.
• Sales fell 15.2% to 3,748 in Prince William County.
The drop is largely due to the tight inventory conditions that gripped the local market during the first months of 2022, coupled with the exuberant selling pace that was seen for the same period of 2021 as buyers rushed to find homes after the first COVID explosion subsided.
In recent months, some potential buyers have pulled out of the local market, spooked by a combination of higher prices and skyrocketing interest rates – rates which, while still not in line with historical norms, are much higher than they were at the time. beginning of the year, reducing the purchasing power of buyers and forcing sellers to rethink their sales strategies.