This week’s Q&A column is written by David Howell, Executive Vice President and Chief Information Officer, of McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant market news, contact David at 703-855-5089 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How was the real estate market in the City of Alexandria for the first half of 2022?
Answer: At the end of June, we like to take an in-depth look at contract activity in the City of Alexandria for the first half of the year compared to the same months of the previous year. To put contract activity into context for the first half of 2022, we will first look at month-end inventory and the number of new listings coming on the market year-to-date.
- At the end of June, there were 0% fewer homes on the market in the City of Alexandria compared to last June. Overall, for Northern Virginia that number is 8.1% fewer homes, so inventory for the City is tighter than the region overall.
- With the exception of March, so far this year the number of new listings coming on the market each month was down. Year-to-date, the number of new listings has decreased 9.2%.
The next set of charts break down contract activity for the first six months of 2021 and 2022 by price and by property type. Alexandria has seen decreases across all property types (condos, attached and detached homes), and the only price category with an increase was for homes priced $300,000-$499,000.
- Contract activity in the City of Alexandria decreased 8.7% in the 1st half of 2022 compared to the 1st half of 2021.
- The number of detached homes, the smallest part of the Alexandria City market, going under contract in the 1st half of 2022 decreased 16.5% compared to 2021.
- Contract activity in the condo market decreased 2.0% and attached homes activity decreased 16.4%.
As we head into the summer months, we’ll be paying close attention to two key market indicators: mortgage interest rates and inventory. Currently, mortgage rates are more than two full percentage points higher than they were a year ago, and that has already impacted affordability. We fully expect that there will be fewer transactions in the second half of the year as buyers adjust to a tougher financing environment — but for those who can afford to purchase there will be more opportunities to negotiate home inspection and other contingencies that were almost impossible in the overheated market of the last two years.
How much leverage those buyers have will depend on inventory. Despite the drop in contract activity, there still aren’t enough homes on the market to meet demand, and that will keep some upward pressure on home prices in the City. But sellers are going to be adapting to the new realities of a softer market with fewer multiple offers and more modest price appreciation.
Note: Data derived from BrightMLS and is deemed reliable, but not guaranteed.
If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria
It’s a day of happiness in Alexandria, as more than 900 Alexandria City High School seniors graduated this morning at George Mason University’s EagleBank Arena. Perhaps student speaker Lenhle Vilakati…
In some ways, it wasn’t a great week for shops around Alexandria. Three Alexandria stores had drivers crash into them this week. At the Bradlee Shopping Center, a driver was…
Westbound drivers may want to avoid Duke Street near Landmark next week as construction will shut down part of the road. The closures will affect the westbound lanes on Duke…
Parents and teachers at a School Board meeting last night said the rollout of a new plan to split specialist teachers across schools has been an unmitigated disaster. The change…
Are you seeking a confidential space where you can explore your emotions, overcome challenges, and find inner peace? Look no further than our dedicated psychotherapy service! We understand that life can be overwhelming at times, and we’re here to support you every step of the way.
At Peaceful Mind Solutions, our passion lies in helping individuals like you navigate life’s complexities and find the strength to thrive. Our skilled and compassionate therapist is committed to creating a warm, non-judgmental environment where you can express your thoughts and feelings openly. With our personalized approach, we tailor each session to address your unique needs and empower you to overcome obstacles.
Through evidence-based techniques and a deep understanding of the human mind, our therapist will guide you on a transformative journey of self-discovery. Whether you’re dealing with anxiety, depression, relationship issues, or simply seeking personal growth, we’re here to provide guidance and practical tools for lasting change.
Time flies when you’re having fun! The T.C. Williams High School Class of 1973 will hold its 50th reunion July 21-23, 2023 in Alexandria. All graduates and their adult nears and dears are welcome. Events include a Friday evening icebreaker, Saturday dinner dance, and a Sunday brunch. For more information: tcwilliams73.com, 770.789.3534.
Spring Fling at Rising Sol Yoga School
Join us for a day of FREE hot yoga. Experience our class styles and meet our teachers. Buy a bite at the Bake Sale to benefit The Carpenter’s Shelter, peruse some special vendors, take advantage of in-person only discounts on