Loudoun County Real Estate Market Update: March 2024
Mortgage Rates: A Primary Factor for the Loudoun County Real Estate Market
Homebuyers and Sellers Await Rate Cuts
From homebuyers to sellers, to the real estate industry and the entire economy, all eyes are on the Federal Reserve’s interest rate decisions. The sooner rates fall, the better for those looking to buy or sell a home in Loudoun County! However, mortgage rate forecasts that predicted a rate cut by now in the spring have proven overly optimistic.
Economic Factors Influencing Rates
Today’s mortgage rates present a strange dynamic: the main reason interest rates remain elevated is because the economy is still running surprisingly hot. Inflation is still somewhat elevated, and labor reports are strong, with fewer job losses than analysts predicted at the start of the year. That’s why the Federal Reserve is maintaining a conservative posture and has not reduced interest rates so far in 2024. (While the Fed does not directly control mortgage rates, they do so indirectly through the benchmark interest rate at which banks borrow from the government and each other.)
Potential Rate Cut Timeline
According to Reuters, “Investors now anticipate rate cuts at two of the four Fed meetings […] in mid-June and again in mid-September.” If and when mortgage rates fall, we expect more homebuyers to join the market as their purchasing power grows. Chances are good that we’ll also see more listing inventory hit the market, as lower rates could coax current homeowners to finally make their move and sell. While sellers often buy again within the same real estate market, this turnover from smaller/starter homes to larger and more expensive properties still creates opportunities for first-time buyers.
The NAR Settlement and Loudoun Real Estate
You may have heard of the lawsuit and settlement with the National Association of Realtors (NAR)? As career real estate professionals, we have some helpful perspective on this. Here’s a bit of background to start.
In the past few decades of real estate, buyer agents were typically compensated from the seller’s proceeds, as specified in the listing agreement and published on the MLS. Commissions have always been negotiable.
It’s not set in stone, but here’s what could change as of mid-July. First off, NAR will change how offers of Buyer Agent compensation are advertised on the MLS. Sellers remain able to offer compensation to Buyer Agents if they want. Buyer Agents must enter into written agreements with their Buyers. And of course, commissions remain negotiable.
For now, it’s basically business as usual. Most sellers still want to make their listing attractive to buyers who may not want to pony up the additional cash to compensate their buyer agent. Cooperating-broker compensation will still be part of that conversation, just maybe not on the MLS. We definitely do not want to rewind forty years of progress to when buyers didn’t have anyone on their side. (Yes, that is how it used to work, way back when!)
What this legal drama really emphasizes is the importance of hiring a proven, experienced real estate agent who you truly trust has your back and who will generate real value in your home sale or purchase. That’s the value of a top Loudoun County real estate agent.
Real Estate Market in Loudoun County and the Mid-Atlantic Region
The real estate market is hot in Loudoun County, Virginia, and the Mid-Atlantic region. Home prices are up, and home sales are increasingly fast, spending a median of only 5 days on the market. All this points to high demand compared to the low supply of homes for sale on the market.
Unless the economic circumstances change significantly, making buyers less confident and forcing sellers to list their homes when they otherwise would not, we do not expect any major changes to these market dynamics. If mortgage rates fall and all else remains the same, we could see more listings, more sales, and higher home prices in 2024.
LOUDOUN COUNTY MARKET: FEBRUARY 2024
|
Statistic |
Feb |
YoY |
MoM |
|
Total Sold Dollar Volume |
197,111,763 |
down 2.5% |
up 18.2% |
|
Closed Sales |
264 |
down 3.7% |
+ 18.9% |
|
Median Sold Price |
$686,070 |
up 8.9% |
+ 2.4% |
|
Average Sold Price |
$755,137 |
up 2.8% |
– 0.4% |
|
Median Days on Market |
5 days |
down 66.7% |
– 54.6% |
|
Average Days on Market |
18 days |
down 43.8% |
– 28% |
|
Median Price per Sq Foot |
$278 |
up 5.7% |
0% |
|
Average Price per Sq Foot |
$290 |
up 5.8% |
+ 0.4% |
MID-ATLANTIC MARKET: FEBRUARY 2024
|
Statistic |
Feb |
YoY |
MoM |
|
Total Sold Dollar Volume |
197,111,763 |
down 2.5% |
up 18.2% |
|
Closed Sales |
264 |
down 3.7% |
+ 18.9% |
|
Median Sold Price |
$686,070 |
up 8.9% |
+ 2.4% |
|
Average Sold Price |
$755,137 |
up 2.8% |
– 0.4% |
|
Median Days on Market |
5 days |
down 66.7% |
– 54.6% |
|
Average Days on Market |
18 days |
down 43.8% |
– 28% |
|
Median Price per Sq Foot |
$278 |
up 5.7% |
0% |
|
Average Price per Sq Foot |
$290 |
up 5.8% |
+ 0.4% |
All data is via BrightMLS & SmartCharts.
Your Loudoun County Real Estate Team
As the Loudoun County real estate market continues to evolve, staying informed and seeking expert guidance is crucial for both buyers and sellers. At the Garrell Group, Jean Garrell leads a perennially top-producing team with a simple philosophy: clients come first. Jean’s dedication to her clients is the key to the Garrell Group’s success, now ranked among the top 1% real estate teams in the nation and the #1 team in Loudoun County for the past decade.
Contact our team at the Garrell Group for trusted advice and expert guidance throughout your real estate journey. We’re here to help you navigate the market and make informed decisions that align with your goals.
Best Loudoun County Real Estate Agents
Following these steps, you can increase the value of your property ahead of a home sale, without breaking the bank. Why not start making improvements today! Your home will thank you for it. In the meantime, if you are thinking about selling your home or have any questions, please don’t hesitate to contact us. We’re always happy to hear from you.
