Many people who are in the real estate business fail to grasp the importance of knowing the market, and to understand that it can have a great impact on their lives.
What is going on with the real estate market?
For you to understand that question, we've got to look back three years ago, something crucial happened that's unique to Northern Virginia. When the real estate statistics are shared, both buyers and sellers benefit. Market Statistics shares information with an exclusive group of people or to engage the buying and selling public to their advantage therefore gain more out of it.
What exactly happened three years ago in January 2018?
Amazon happened.
You got that right! They had announced that their second headquarters is coming to Northern Virginia. As a result of the anticipated "Amazon effect", there were about 35% less homes placed on the market all the way through 2018 and 2019. Meaning, the closer you are to Crystal City, the greater that the impact was. Exciting times!
Real Estate professionals were predicting that in March 2020 in Northern Virginia, the homes that would have normally sold in 2017, 2016, and before that did not sell in 2018 and 2019, would be placed on the market in the Spring cycle of March 2020. We were anticipating that the market would flatten at that point.
Well, what none of us could predict was a pandemic!
CoronaVirus happened.
March 2020 around that time when the NBA said they were canceling the season. The real estate market responded in around March to May of 2020 where there was an additional 35 percent less inventory, and below that 35% less inventory and 35 % less demand. That remained March to May 2020 until the buyers came out of the woodworks in June of 2020.
*Prices actually went up in many areas of Northern Virginia by double digits!” That brings us to where we are today!
So let’s continue…
Where are we today as we get into the end of the year 2021?
Interest rates remain at an all-time low
The differential between the demand, between the supply and the buyers has shrunk. It's still in the seller's favor.
Today, it looks like this where it's still a “gain for the sellers”. Other things to consider is the interest rates remain at an all-time low. What that means for buyers, even though prices have gone up, interest rates have gone down.
There are two factors to consider:
Interest rates
Cost of the loan - I don't hear a lot of buyers talking about this factor or maybe even realizing it
This is why research is important and knowing the market is vital. This is the most critical step. Seriously.
For buyers, you're in a little bit of a less good position than you were 18 months ago, but you're still NOT in a bad position because of the interest rates. For sellers, you're in a GREAT POSITION because of the prices, because you're selling and you're cashing out.
It could benefit you depending on the price that you're selling and the price that you're buying because it could be two different markets.
I hope you find reading this guide informative and enjoyable as I did writing this.
If you are moving to the Northern Virginia area, and if you would like to have some questions answered about where you're considering living, I'd be happy to answer your questions.
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.
Save Thousands of $$$
on your next home loan.
Keller Mortgage can save you thousands of dollars. It's fast, easy!
SCHEDULE A CALL NOW TO DISCUSS HOW OUR 193 POINT PLAN TO SELL YOUR HOME WILL GET YOU THE MOST MONEY IN YOUR POCKET.
Have a question about buying, selling or investing?
Buying a Home is Easier than You Thought!
Here's a list of what you need to think about before you buy, and it will walk you through what you can expect from the buying process itself, plus tips to make life easier after you buy your dream home.
