The answer may surprise you.
As you know, real estate is an asset, and through time, assets appreciate.
If you are considering selling your property for top dollar, I encourage you to watch this video.
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At the beginning of 2023, real estate, on average, is more than 4%, year over year. But when the pandemic happened, real estate prices soared, which made people wonder how did that happen?
What caused the price increase?
And where does that leave us today?
First, let's look at the data.
Reference from Google
Over the last two years, this is the national market, 14.24%
Over the last two years of appreciation - 7.58%; over the previous five years, you can see it's 4.73% since 2000.
In Virginia, the prices of appreciation will depend on the location. But in the entire state of Virginia in 2000, if you bought a home for $100,000, as of 2022, it's worth almost $180,000.
That's a pretty big appreciation, and that's good for an asset. 😍
Moreover, over the last year in the Virginia market, you'll see some tabling of prices.
And if you look at the last five years, prices have soared, and the prices continue to go through time. And what we're experiencing right now is a flattening.
An important question is whether real estate markets will return to their pre-pandemic state or be changed forever.
Now that the impact of the pandemic is lessening (and hopefully staying that way 🙏), the market is at 4% growth.
What caused the prices to appreciate during the pandemic?
Between December 2019 and December 2020, house prices outside the city center rose significantly more than those inside. More noticeably, in 2020, rentals from the city fell—in certain major metropolitan areas—while rents in the suburbs climbed sharply.
Simply put, People want to move from their congested condos to townhomes or single-family homes. However, the residents of those larger homes (who they wish to buy) are staying the same, particularly starting in May or June 2020.
So the demand rises, and the supply stays the same. This caused an iniquity in supply and demand.
This event led to 2 things:
An inequity in supply and demand.
Inflation
What is the discrepancy between supply and demand?
It is when there are changes in supply and demand.
What made the (people who live in the outskirts) move?
Prices escalated dramatically, so most agreed to sell their homes.
What is inflation?
Inflation measures how much more expensive goods and services have become over a certain period, usually a year.
What's in it for you?
Today, there's equality in supply and demand, and inflation is chilling out, so the expectation moving forward is that it will be a more balanced market. So it's a good time to buy your dream home or property.
If you are considering selling your property for top dollar, I wrote a book, The Path to Sell Your Fairfax County Property for Top Dollar. I've got other editions for Loudoun County and for, Prince William County, etc.
I shared in this book what I have spent all my 20 years figuring out how to sell properties for top dollars. So if you're interested in getting a copy, let me know. You can hit me up through email: Dan@greetingsvirginia.com. You may also shoot me a message: 703-346-2776.
I've been selling real estate since 2007 here in the market. There's no nook or cranny that I don't know. So I'd love to be able to connect with you.
SCHEDULE A CALL NOW TO DISCUSS HOW OUR 193 POINT PLAN TO SELL YOUR HOME WILL GET YOU THE MOST MONEY IN YOUR POCKET.
Buying a Home is Easier than You Thought!
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