The Northern Virginia real estate market has been nothing short of astonishing lately. Despite interest rates moving slightly upward, there continues to be a very low number of homes for sale and a high demand from buyers. In fact, we are currently experiencing less than one month's supply of homes, which means that if no additional homes came on the market, every single home would be sold in just over two weeks.

When we compare current inventory levels to those of the three years before the pandemic, we can see a significant difference. During the last week of April, we averaged 5,247 homes for sale, and before that, we had even more than 5,247 homes. This year, however, that number is just 1,529.

Typically, this is the time of year when we see a surge of inventory during springtime. However, this year, people are not timing their moves to coincide with the end of the school year or warmer weather. I believe this trend will continue for some time.

So, why are inventory levels so low? One major reason is that homeowners are mortgage-rate-locked into their homes. They made a wise decision to refinance when rates were in the mid-2s to mid-3s and are not willing to give up those rates for the currently low to mid-6s. For those who are willing to move and give up their rate, there is nothing available to buy. Therefore, they cannot put their house up for sale. This is contributing to the low number of houses for sale today.

Even when people feel they "need" to move because of life circumstances, they may feel trapped by their rate. The low inventory levels and high demand have led to increasing prices, making it difficult for some people to qualify for higher mortgages. Unfortunately, I believe we will be in this conundrum for the foreseeable future.

Due to the high demand at virtually every price point, most homes have multiple contracts, and buyers often bid well above the list price. In some cases, buyers are even writing on homes sight unseen. It's truly amazing to see this market in action.

If you're considering buying or selling a home in Northern Virginia, please know that I'm here to help you achieve your goals. I can offer you the best advice and strategies to navigate this challenging market. Have a fantastic Memorial Day Weekend!