As part of my regular real estate research, I look as sales activity and trends throughout our area. I recently took an in-depth look at what’s been going on in Northern Virginia real estate so far this year.
The most notable trend is the leveling off of home sale prices so far this year. When we compare home sale prices this year to the same period of last year, there is no statistically significant difference in the average sale price (see the table below).
This might seem like a bad sign, but it really isn’t. In fact, home sales this year have been quite strong. However, the market has reached a point where homes are no longer undervalued.
In a market where homes are not undervalued, prices will remain the same, or slowly increase at a far more modest rate, and that is what we are seeing so far this year.