Northern VA Market Statistics for September
Year over year, September home sales in Northern VA rose 38%, with the median days on market dropping by 38% according to NVAR. Listings in the area were down 5.6% overall, suggesting that inventory is still low and homes are moving fast. Not only are homes selling quick, but the average sales price rose 15% over 2019 to $690,981 in Sept 2020. The median sales price rose by 16.86% to $596,000 over September of 2019’s median price.
This is big news for investors who already have a project underway or who are looking to purchase projects with a quick turnaround time, as we’re are entering a hot seller’s market this fall. COVID has certainly had a negative impact on real estate in different areas and sectors, but the Northern VA residential market is seeing a ton of momentum in September and moving into October, despite the fall typically showing a lull in activity in prior years.
- Homes Sold: 274 (up 44.21% YoY)
- Average Sales Price: $826,675 (up 17.09% YoY)
- Average Days on Market: 25
- Homes Sold: 269 (up 53.71% YoY)
- Average Sales Price: $621,100 (up 9.92% YoY)
- Average Days on Market: 22
- Homes Sold: 33 (up 6.45% YoY)
- Average Sales Price: $628,607 (up 22.7% YoY)
- Average Days on Market: 17
- Homes Sold: 16 (up 23.08% YoY)
- Average Sales Price: $868,180 (up 25.24% YoY)
- Average Days on Market: 24
Key Takeaways for Virginia Real Estate Investors
Finding the deals seems to be the main issue for real estate investors that are looking to secure a fix and flip property, echoing the same concern that existed pre-COVID. Sourcing distressed properties now so that you can complete renovations and sell while the market is still riding its current high will be key. Some of the top ways to find off-market deals right now are:
Auctions and Foreclosures: Virginia has not seen any large spike in foreclosures due to COVID (yet) but there are still REO’s, short-sales, and even voluntary auctions happening. Be sure to check out Alex Cooper for upcoming virtual auctions.
Talk to Contractors: Find out where contractors are currently completing renovations, those are the neighborhoods you need to be looking in.
Driving for Dollars: One of the oldest tricks in the book is still one of the best for targeting homes with high potential and offering to buy from the owner. Drive the neighborhoods where old homes are getting major renovations and write down all of the addresses that you want to pursue – no need to reinvent the wheel and find a completely untapped neighborhood.
Resale prices are high right now, but as of September, they are starting to show a plateau, likely hinting at a slight correction as move-in ready inventory has begun to catch up with buyer demand. As we look into the end of the fall and start of the winter market, prices are still excellent and buyer demand still far exceeds the typical seasonality. For Virginia real estate investors this means that a fix and flip project completed in the winter will likely make more sense to go ahead and list versus waiting for the spring market since the difference in pricing and demand will likely be far less than previous years.
While COVID had an overall positive impact thus far on the Northern Virginia real estate market (knock on wood), the lending space was shaken significantly as capital markets shifted to risk-averse strategies and some local lenders had to pause all loan originations or even close up shop altogether. We saw first-hand how difficult it was to navigate the spring and summer capital market conditions and are fortunate that we were in a solid place pre-COVID, allowing us to push through where others were unable to. As of September, WCP and other well-prepared lenders have emerged from the initial shockwave of COVID and are still lending at high volumes with highly competitive rates and terms. Seeking financing for a fix and flip project should not be very different at this point than it was pre-COVID, so be sure to let us know if you’re ready for a fast, no-obligation loan underwriting and we’ll take care of you.