As we reach August in our northern Virginia market, I think we are in the early stages of a market “melt-up.”
By “melt-up” I mean prices are increasing a lot higher. The main reason for this is there isn’t enough inventory. As you can see in the national housing inventory chart I’ve attached in the video above, current inventory is very low.
There’s something important to note about these numbers that might put to rest any fears that we might be in a market bubble and now might be a bad time to buy. From 2005 to 2007, inventory was very high. When supply exceeds demand, that’s not a good time to buy.
As I’ve already said, our current level of inventory is at an almost record low. When there is no supply and all kinds of demand, prices will rise. Home builders are responding to this by ramping up inventory, but they’re still not back to long-term trend.
In short, if you’re a buyer, now is the time to make your move. If you have any questions or are thinking of buying or selling a house in our northern Virginia market, give me a call.