With winter in full swing, a recently released report on Midlothian’s real estate market shows an expected 35.6 percent decline in home sales during the month of January. However, these numbers should not discourage sellers as they follow a consistent seasonal trend as well as representing a 28.7 percent year over year growth.
A Look at Housing Stats
By the conclusion of January, 105 units had been sold, with 94 being single-family homes. This shows a decline compared to December’s 146 sales, but an increase relative to the 73 units sold last year. New listings bounced back to 206 homes from December’s low of 91, causing a slight rise in active inventory. As a direct result of the increase in supply and decrease in demand, the median sale price for homes in Midlothian took a $12,000 hit, falling to $275,000. However, this still represents a 3.5 percent increase against $265,525 in January 2017.
What Does this Data Mean?
In the long term, consistent growth in year over year sales and prices indicate that 2018 may be on pace for another record-breaking year for real estate in Midlothian. Experts believe that nationally the real estate industry will be red hot this year, and we will most likely see the effects of this locally. With inventory hovering around a 2-3-month supply, data shows an already powerful sellers’ market that is predicted to increase in strength throughout the year.
In the short term, however, January has seen a temporary return to more balanced conditions. A sharp decrease in sales and prices is not unheard of in the winter period, but it should be taken a sign that conditions currently favor buyers while sellers may want to wait a few months for the market to start moving at the rapid pace we saw last year again.
What does this mean if you’re buying a Midlothian home?
With an anticipated slowdown in home prices underway, the present market conditions provide a great opportunity for those interested in buying a home. However, it is important to do this with haste as inventory remains at record low levels and prices are nearly certain to rebound in the coming future. While options are currently more limited than they will be in the spring and summer seasons, you can expect a discount of about $40,000 by purchasing now. The growth in prices against last year’s also indicates that the market may remain hot for the next few years, so for buyers looking for a good deal it is now or never.
What does this mean if you’re selling a Midlothian home?
The deceleration of buying this winter means it may be wise to take some to evaluate your current strategy and prepare for the busy spring months. For those not willing to wait, the upside of the current market is that homes are still selling quickly with a median sale time of 50 days. Strong demand has resulted in houses being sold for essentially the same as their listing price, meaning it is important to determine if how much you are asking needs to be raised or lowered.