If you try to stay up to speed on what’s going on with the real estate market, you may be unsure which sources you should trust. After all, the national media would have you believe that the real estate sky is falling. Local publications print conflicting headlines and information, sometimes within the same issue. So, who should you trust and what should you believe? The truth is that real estate is extremely hyper-local and time-sensitive, so it’s best to weight local analysis (not just sensationalized headlines) over national analysis. Let’s dig into October sales in Lochwood, along with sales that will be closing soon, and what’s going on with the homes currently listed for sale, so that you have the most up to date and accurate information about the Lochwood real estate market. Be sure to read all the way to the end to learn the key takeaways from my detailed analysis.
Looking Back: October Sales in Lochwood
The table below details all of the Lochwood homes that sold in October 2022. In all, there were 9 sales. Three of these homes sold for 100 percent or more of the seller’s original list price (far right column). For the purpose of comparison, in October of 2021, there were 7 total sales and 5 of those homes sold for 100 percent or more of the seller’s original list price.
There were fewer price reductions for October sales than there were in September. The listing at 11635 had the highest number and dollar value of price reductions. In all, the list price of this home was reduced by $50,000 before going under contract.
*The listing at 12220 Brookmeadow originally came on the market priced at $350,000. I called the listing agent immediately to ask her why she had priced it $80,000 below what my listing two doors down had just sold for. From what I could tell, the two homes were quite comparable in terms of condition and size. The agent told me that she was from Arlington and admitted that she had a hard time pricing the house because she didn’t know the neighborhood very well. She ultimately raised the price, which resulted in the seller making $50,000 more than she would have had the house remained listed at $350,000. Yet another reason to work with agents who actually know the local market.
**I also listed the house that recently sold at 10510 Lippitt. Click here to get the full story on this sale.
Looking Back: Year-over-Year at a Glance
The next table gives you a snapshot of how the market performed in October of 2022, compared to the same time last year. Besides the overall sale price being about 20 percent higher, the biggest shift in the market has been interest rates. In October it cost a home buyer twice as much to borrow the funds for their mortgage. That’s a significant change!
What’s Happening Right Now in Lochwood? Pending and Active Listings
There is currently one home sale pending in Lochwood. I anticipate that we will see fewer sales in November 2022 than we did in November 2021.
There are currently 14 homes listed for sale in Lochwood. Prices for these listings range from $359,000 to $1.25M. Nine of these listings have had one or more price reductions. 10862 Carissa has been reduced by nearly $100,000. 10815 Meadowspring was originally listed for $1.1M. It was relisted by a new agent in October for $750,000. It has had another $100,000 price reduction and is now listed for $649,900. Click here to view homes that are currently on the market in Lochwood.
- Year-over-year, the number of homes sold is quite similar. That’s encouraging given how much interest rates have gone up. It indicates that buyers are still very interested buying homes in our neighborhood.
- Fewer homes selling for 100 percent or more of the seller’s original asking price indicates that there are fewer buyers competing to get these homes under contract.
- Price reductions indicate that sellers can no longer ask whatever price they want for their home. Buyers will wait for a price reduction so that the price comes in line with what they believe the value should be and what they are willing to offer for the property.
- Our market has gone from 100 miles per hour back down to the speed limit. For the time being, with the information currently available, our neighborhood market appears to be normalizing.
- If you decide to sell your home in the near future, it’s important to work with someone who really has a pulse on the market. I’ve sold several properties in the neighborhood in the past few months and I know that sellers need up to date information so that they feel confident walking away from low ball offers. There is a lot of that going on right now.
- Last week, interest rates dropped significantly. They’re currently hovering around 6.5 percent. The forecast is that this drop is temporary so I am surprised that we have not seen more homes go under contract.
Now that you’re up to speed on what’s happening in Lochwood, go back through this post and take a look at some of the links that I’ve included. That way you can see for yourself what’s on the market and get the lowdown on the sale at 10510 Lippitt.
Happy holidays and stay tuned for my final newsletter of 2021.