Do you want to know the secret?
To know the possibility of the future, it’s a good practice to look at what happened in the past. So, let's have a quick view of these past few years that help shape 2023.
Before the pandemic, something else happened in 2018.
This blog will be helpful and a good resource for you.
Does anybody know what happened in 2018?
Something economic happened.
The last time that the market went into a dip, a significant dip, was from 2007 to 2009. By 2013, that market rebounded to where it was before the 2007 crash. So it's a two-year dip and a four-year return.
That means in:
November 2006 and February 2007 - you bought a home at the top of the market between the peak of that crash
2022 - that property you bought increased its value
So what happened to the prices between 2013 and pre-pandemic?
2018 - Amazon happened. They put up their 2nd headquarters in Crystal City, between New York City and the Washington DC area, bringing an estimated 25,000 new jobs to each location in Queens, New York, and Arlington, Virginia.
It means 800 new jobs yearly over 12 years, a drop in the bucket.
Domino Effect
Because one tech giant has entered the marketplace, other tech giants are following in.
So, what is the economy of Washington, DC, and Northern Virginia now?
Yes, it's up.
What drives the economy?
Two things drive our economy:
Technology today
United States government
Technology
The technology sector is in the "toddlerhood" stage, which has much to grow.
We hear all the elections, and everyone's going to move out, or everyone's going to move in. But what drives the local economy is the contractors with the government, like Booz Allen Hamilton, SAIC, and Northrop Grumman.
Government
March 2020. I was sitting in my living room watching when the NBA announced that the game was postponed to a later date.
And I'm like, "Man, this is serious!" 😱.
What's the supply and demand?
The amount of a commodity the producers make accessible to the purchasers or consumers at a given price is known as the Supply. Demand is the consumer's desire, willingness, and financial capacity to purchase a good or service.
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 NOT moving.
So the demand rises, and the supply stays the same. This caused a discrepancy in supply and demand.
What is the discrepancy between supply and demand?
It is when changes in supply and demand occur.
What made the (people who live in the outskirts) move?
Prices escalated dramatically, so most agreed to sell their homes.
Get into 2021. There's a slowdown through the winter through the seasonal cycle, and the second plague happens in 2022.
The government stimulus during the pandemic aggravates the economy into inflation.
So you have supply and demand that has two cycles of appreciating prices + inflation that gets prices.
So the government has to slow things down by manipulating the overnight rate for the banks.
What is inflation?
Inflation measures how much more expensive goods and services have become over a certain period, usually a year.
Why are these important to you?
Because the more information you have as a consumer, the better you'll have the faith to address the fear and the anxiety you feel.
Now, you can sit there and say,
"I can choose to be afraid because I'm used to saying, or I can educate myself intelligently to understand what's happening in the marketplace. I understand what's happening today and make an informed decision when buying or selling homes."
So, if you're considering moving to Northern Virginia right now, I'd love to talk with you. You can hit me up at 📧: Dan@greetingsvirginia.com. You can also shoot me a message here at 📱:703-346-2776.
Just send me a text. I'll respond and love to be able to have a conversation with you to share the techniques that I'm using to generate wealth the same way that you can.
Our Team:
Dan Rochon
John Root
Zainab Fahim
John Turner
Bryant Bryson
Damian Dickerson
Talk to you soon.
P.S. You may also want to check our active listing here.
If you're interested to learn more about Real Estate Investing or tips and strategies about Real Estate, you can reach me at 703-346-2776 or send me an email at Dan@greetingsvirginia.com. We will be more than happy to help you.
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