December 2023 | Market Update

Dated: December 5 2023

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As we all know, today's headlines tend to focus more on capturing attention rather than accurately representing reality. It's crucial for headlines to adopt a localized approach and provide a precise, reliable depiction of the real estate market. Unfortunately, many of these headlines contain misleading statements such as skyrocketing inventory, crashing sales, and declining prices. These statements fail to reflect the actual condition of our local market.

Another issue arises when interest rates experience a significant increase. Media outlets often emphasize the rising rates, but little attention is given to the information when rates decrease, as they have recently. Currently, interest rates are at their lowest levels in the past two months. Additionally, loan applications are on the rise. This imbalanced reporting can lead to people making incorrect decisions when it comes to selling or buying a property.

To shed light on the true situation, it's important to note that our inventory has either remained stable or slightly decreased. In fact, inventory levels dropped by 11% in Northern Virginia just last week. While our sales are maintaining a good balance, they are lower compared to previous years. However, it's worth noting that daily transactions are still happening in the real estate market. As a result, the supply of available homes is currently at a low level of just 1.2 months' supply. The decline in sales can be attributed to lower inventory levels compared to previous years. If you would like more information on the reasons behind this, I have discussed them in previous articles. Feel free to reach out to me for more details. If there were more houses available for sale, it's highly likely that sales would increase, given the robust demand that persists in our market. Moreover, with the recent decrease in interest rates, we anticipate even stronger demand in the short term and into 2024.

Now, let's talk about the great news regarding RE/MAX Gateway's year-to-date success. Our transaction count through 11 months is up by 1%. Our sales have increased by 4%, and the number of listings we have taken has only decreased by 5%. In contrast, the Northern Virginia market is down by 24% in transactions. This means that our agents have outperformed the market by 25%! Our sales volume is down by 4%, while the Northern   Virginia market is down by nearly 21%. Once again, we are outperforming the rest of the local market. If you are looking for results, feel free to contact us - we get the job done!

If you are seeking accurate and reliable information about the real estate market or want to discuss the reasons behind low inventory levels, I encourage you to contact me. I will provide the proper insights and data needed to make well-informed decisions that align with your lifestyle needs. Enjoy the holiday season!

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Scott MacDonald

Scott MacDonald, an experienced entrepreneur in the real estate industry with over three decades of expertise, leads a dedicated team at RE/MAX Gateway. Scott has successfully closed thousands of tran....

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