Alexandria, VA – We love the holiday season in our charming and award-winning town. If you haven’t enjoyed the Scottish Parade, the Parade of Boats, First Night Alexandria, and other wonderful holiday traditions of our city, make sure not to miss these special celebrations next year.
We thought we would start this year with a year in review and look ahead at what we may expect in the 2024 real estate markets.
Last year, 2023, was a very challenging year for real estate. Why?
- Interest rates got as high as 8%
- Inventory was down 23% year over year (23% over 2022)
- People whose homes are currently financed with very low interest rates were/are unwilling to move unless they really must
- Economic uncertainty—the word “recession” was discussed regularly
- The Feds raised the prime lending rate consistently throughout the year
Graph One will show you the 2023 real estate stats for the City of Alexandria. Note that even though total sales volume was down 13+%, the average and median sold prices stayed steady, as did the average days on the market. The ratio showing the average sold price compared to the average list price was steady, as was the average list price for sold properties.
Remember that these numbers include townhomes, single family homes, and condos.
What do we think will happen in 2024?
Right now, the market is red hot. Buyers are swarming, and we are seeing a remarkable number of showings and open house visitors. Additionally, we are seeing multiple offers and escalation addendums. We are currently in a very competitive environment for buyers.
We feel optimistic about the real estate market. At the time of this writing, we have seen rate sheets showing the interest rate as low as 6% for a conventional loan and lower for a government-backed loan (VA and FHA). Inventory is predicted to rise as the year progresses. Buyers have adjusted to the new normal regarding interest rates.
It is worth noting that this is a Presidential election year. Since we are a company town (Federal Government), with many of our residents working in some capacity in the federal government, we have noticed that the closer we get to election day, the slower the market can become.
We are still fully confident that this will be a great year for our local real estate market!
The Seward Group would be honored to help you, a family member, or a friend with any of your real estate needs.
Article written by The Seward Group at TTR Sotheby’s International Realty. The Seward Group offers full-spectrum concierge real estate services at all price points. Email: [email protected], Visit seward-group.com, or Call (703) 298-0562.
ICYMI: For Third Straight Year, Alexandria Nominated for Best City in Travel+Leisure Magazine Survey
