According to the June 2021 Home Sales Report released by Virginia REALTORS®, while June sales numbers were strong, several signs point to a slowing of the housing market over the second half of the year. A cooling in the market will help ease the frenzy that has led to bidding wars and major price escalation all across the state.
There were 16,393 home sales in Virginia in June 2021, which is a 24.4% increase over June 2020. Sales were up 15.9% between May and June. The median home sales price statewide was $372,500 in June, up 17.1% from a year ago, a gain of $54,500. While the housing market delivered these high numbers in June, the number of homes available for sale is also increasing.
Most markets across Virginia are seeing expanding inventories, and some markets are seeing a slowdown in buyer activity. At the end of June 2021, there were 19,346 active listings statewide, which is 17.9% lower than the level at the end of June 2020. However, the number of month-end active listings increased by 7.5% between May and June.
In recent months, a lot of the expanding inventory has been driven by more listings of condominiums and townhomes, particularly in Northern Virginia. However, more single-family homes are coming onto the market, and it is expected that overall inventories will be greater over the summer and into the fall in most markets in Virginia.
“It remains a seller’s market, although buyers likely will find less competition and more options this summer and into the fall,” says Virginia REALTORS® Chief Economist Lisa Sturtevant, PhD. “Inventory will remain tight, and demand will stay strong, but the pace of home sales activity and the increase in prices should begin to return to a more normal state throughout the rest of the year and into 2022.”
The Virginia Home Sales Report is published by Virginia REALTORS®. Click here to view the full June 2021 Home Sales Report.
What new and future parents should look for in a home
If you’re a new or expectant parent, buying a family home may be on your to-do list. While you can’t anticipate everything you’ll need in the coming years, here are some essential features to keep top of mind as you shop for your dream home.
• A home on a quiet street in close proximity to a playground. Ideally, the route to the park should have sidewalks the entire way.
• A mudroom with plenty of storage to keep jackets, dirty shoes, and other clutter from spilling into the main li¬ving space.
• Bedrooms on the same level. This is practical for nightly feedings and gives both you and your kids peace of mind.
• A bathtub, preferably one that’s easy for kids to access and has an extra hand-held shower head.
• Stairs that are easy to baby-proof. Avoid wide staircases that won’t fit a safety gate and railings with large gaps between the rungs.
• A powder room on the main floor. This is helpful for potty training so your child has quick and easy access to a toilet.
To ensure you find the right home for your family, work with a real estate agent who’s familiar with the area where you want to live.
Real estate and community news with Jen Avery, REALTOR
This year I would like to add community news to the Warren County Market Reports every month. We have several upcoming events to put on your calendar!
Front Royal Women’s Resource Center
- Women’s Wellness Workshop – February 5 from 9am to 1pm | Virtual
- Visit this link to register: frontroyalwomenswellness.com
- YOU MUST RSVP to receive the Zoom Link
- Presented by Front Royal Women’s Resource Center & The Phoenix Project
- Sponsored by Valley Health and Friends of Samuels Library.
- Virtual event jampacked with amazing presenters/workshops from 21st Century Investing to Movement, Creativity, Nutrition and so much more. Goodie bags with information, tools and of course goodies for the first 50 who sign up.
House of Hope
- Empty Bowl Supper
- date to be determined soon!
Humane Society of Warren County
- Polar Plunge – January 15 at 11am | 4H Center Lake
- Interested in sponsoring a plunger? Please help our local animal shelter care for all of our animals needing a forever home. Visit this site for all details: hswcevents.org/polar-plunge
Rotary Club of Warren County
- Ride With Rotary – April 5 starting around 9am with staggered start times | Rockland Park
- New fundraiser brought to you by the Rotary Club of Warren County. Beneficiaries for the ride are Reaching Out Now and Cars Changing Lives. 4 ride routes, all ages and all riding experience levels.
- Event link: https://fb.me/e/1ngbJweEg
- Registration will begin early February.
- Sponsorships are needed. Contact Ellen Aders for more information on sponsorship levels. Great way to get a little exposure for your company!
Logan Maiatico Foundation
- Alfredo Birthday Dinner Fundraiser – January 29 from 5:30-8:30 | Front Royal Volunteer Fire Hall
- The Logan Maiatico Foundation has been established to continue the legacy of Logan Maiatico, Logan was loved by all of his friends, family and community and was known for spreading love to everyone he interacted with.
- Enjoy alfredo birthday dinner, Logan’s favorite meal! Ten dollars per person paid at the door. All proceeds will go to the Logan Maiatico Foundation in memory of Logan. Interested in swag? Visit: thestitchesandbows.com/live-like-logan
- We See You, Warren County – sign up (free) online to join this “movement” to help bring our community together. Follow on Facebook! You are going to love it! #WeCUWC
Warren County Market Report for December 2021 with Jen Avery, REALTOR
Watch this video for a quick summary of Warren County real estate for December 2021. We are back in the green. Numbers have climbed during December. Charts demonstrate the changes in the market, so be sure to click play!
In general summary:
- New Listings are UP 17.8%.
- New Pending UP 1.9%.
- Closed sales are UP 12.9%
- Average Median Sold $333,450
- Average Days on Market 31
*If you would like a copy of this report emailed to you, please send request to firstname.lastname@example.org.
Resource: December 2021 Market Stats by ShowingTime
Bright MLS: Statistics calculated January 2022.
Jennifer Avery, REALTOR® “Your Happy Home Expert!”
BPOR, SRS, CNE, E-Pro Certified | Licensed in VA
email@example.com | 540-683-0790
CRUM REALTY, INC | 318 S Loudoun St, Winchester VA 22601 | 540-662-0400
4 expenses homeowners pay that renters don’t
Do you want to become a homeowner? While there are many benefits to owning property, there are also numerous costs. In addition to the price of the home, here are just some of the expenses you’ll need to factor into your budget.
1. Property taxes
If you own a house or condominium, you’re responsible for paying taxes to your local government to fund services such as garbage collection, road maintenance, policing, and more.
2. Homeowner’s insurance
Although tenants typically pay for renter’s insurance, it’s important to be aware that homeowner’s insurance is a lot more expensive. This is largely due to the fact that if you own the property, you need to insure the actual structure of the home, not just its contents.
3. Mortgage interest
This is an expense you’ll have to pay for the duration of your mortgage. The amount required will depend on the time over which your mortgage is amortized, the frequency of your payments, and the rate and type of interest.
4. Maintenance and repairs
Gone are the days of simply calling the landlord if an appliance stops working or there’s no hot water. From simple electrical repairs to replacing the roof or flood-proofing the basement, all home maintenance tasks are the homeowner’s responsibility.
Before you decide to buy a home, it’s a good idea to consult a financial adviser to ensure you’re making the right choice based on your needs and circumstances.
How to maintain your home’s curb appeal in winter
Do you want to put your house on the market this winter? If so, you’ll need to make sure the cold, dreary weather doesn’t detract from your property’s curb appeal. Here’s how to give potential buyers a great first impression.
• Paint your front door. This is a simple way to make your home stand out. A bold color like blue, red, or yellow is sure to pop against a snowy landscape.
• Update your number and mailbox. Replace peeling sticker numbers and a rusty mailbox with quality pieces that match the style of your home’s exterior.
• Spruce up your outdoor lighting. Since the days are short in winter, illuminating your home should be a top priority. The warm glow of light from wall sconces or a porch chandelier will improve your home’s appearance and visibility.
• Add color to your yard. Plant evergreens, frost-resistant flowers, and shrubs with colorful stems and berries to liven up your winter landscaping and make your property more inviting.
• Clear a path to the door. You’ll want to ensure your property is safe for buyers to visit. Remember to keep surfaces free of snow and ice, especially before an open house.
For more expert tips on selling your home in winter, consult a local real estate agent.
Market still sweet for sellers, but slowing
Two years ago, the real estate market was sweet and hugely profitable for sellers.
Record-low interest rates made buying homes attractive, but there weren’t a lot of homes on the market, so buyers were paying more and sellers were getting great prices.
In 2022, the market is still great for sellers but the picture is beginning to change, market watchers say. The market is said to be ‘normalizing.’
Realtor.com predicts that 2022 real estate prices will continue to rise, but not as quickly as the last two years. Economists predict a slower rise of just 2.9 percent, compared to 12 percent in 2021.
Meanwhile, they think mortgage rates will rise, and though there will be plenty of buyers, there still won’t be very many houses on the market. Homes for sales will still be at record lows, with a barely perceptible rise of .3 percent. Again in 2022, this is good news for sellers.
Suburban home demand will continue as buyers leave cities and look for bigger spaces as they spend more time at home.
Mortgage rates may rise from an average of 3.3 percent to 3.6 percent by the end of 2022, according to Freddie Mac data.
Meanwhile, Zillow expects home values to rise by 13.6 percent, ending in October 2022.
The end of 2021 showed higher than expected sales of existing homes. Zillow predicts those sales to continue to rise.
Zillow analysts also expect mortgage rates to rise, driven by inflation. Slightly fewer people are refinancing, but home-buying remains strong, along with retail sales, even in the presence of price increases.
Ask the Expert: We want to buy a house, but home prices are very high. Will prices come down in 2022?
No one can predict the future, but analysts continue to say home prices will stay high, and probably rise higher in 2022.
It’s a great time to sell a home, with prices up 20 percent nationally.
To understand this, consider the principle of supply and demand.
When people want to buy houses, that is called demand. When there are houses to sell, that is called supply. Prices are currently high because there are lots of people who want to buy houses and not enough houses for sale. So the supply of houses is low compared to demand.
What happens then is that buyers offer high prices for the houses that are available and sellers also ask for higher prices. If there were more houses for sale, prices could go down, especially at the current affordable interest rates on mortgages.
But many things affect this supply and demand tradeoff.
In the current market, one reason for low supply is that the home building industry has been unable to build as many homes as they could sell. They can’t get the building materials and they are short of workers. According to the U.S. Bureau of Labor Statistics, construction employment in October was still 201,000 jobs below its February 2020 level.
Laws can affect supply. Strict zoning laws and construction regulations make it difficult or impossible to build apartments and homes in some states and areas, so housing stock becomes tight.
On the other hand, prices that stay very high for a long time can, in fact, lower demand as buyers become discouraged. Then, more houses go unsold and sellers lower prices to entice buyers.
Meanwhile, rents can go up because it costs more to buy a rental property and there is more demand for a rental property if people can’t afford to buy houses.
All that said, here’s a good rule of thumb: The best time to buy a house is when you are ready.