How does the Real Estate Market look for Northern Virginia this year? All of the signs are for a strong market and increasing listing and sales prices. Due to continued low interest rates and low inventories, the demand from buyers will continue to outrun the supply.
Gotta love those economists! A couple of months ago they were all on TV talking about the dreaded “Double Dip” for real estate. Now the local DC area economists are starting to talk about the impending housing shortage and what it is already doing to house prices. So what is the lesson here? Don’t listen to the experts. When you are ready to own your own place, or go buy a bigger one, Like Nike says, “Just Do It!”
Folks worried about falling prices and those wanting to make ridiculously low offers on real estate should look at the statistics. Prices bottomed out two years ago and having been moving up slowly and steadily since. The steal deals are long gone.
Although home sales have begun to exceed new inventory for several weeks, because of the excess inventory prices have not yet stopped declining. Should the sales trend continue we can expect prices to level off soon and begin to climb back up. Most areas of Springfield have seen increased activity
If we put 10 economists in a room to discuss the current real estate climate and the forecast for the future, we would likely hear 10 different opinions. And if we believe everything we read and hear from the media to be true, we might wonder why we even get out of bed in the morning. Certainly the economy is still suffering and we are living in difficult times, but there is always a bright side, a silver lining to rely on.
For close to a year, I have been saying that prices in Centreville were continuing to move up after prices bottomed out in December 2008. The increase in confidence paired with amazingly low interest rates fueled a growing trade up market where existing homeowners with equity started selling their house to buy a bigger one. This has helped pull up the average sales price.Even with only a four and a half month supply of houses, I expect the second half of this year to have fewer transactions than the first half because the First Time Homebuyer Tax Credit distorted the market.
As we have said month after month, prices in Centreville are moving up and have been for the past 17 months. Over the past several months the market is no longer dominated by only First Time Buyers and Investors. We now have existing homeowners trading up to buy a bigger house.
People always wonder if we are in a buyer's market or a seller's market. You'll hear some say it's a buyer's and some say it's a seller's market. You can argue either point based on guess work, but there is a specific way to determine the market conditions in your area.
Prices in Centreville are rising and there is a trend toward declining inventory from which to select. As this trend continues, home prices will continue to rise as a result. In fact as this trend continues, the upward pressure on prices will be just that, Pressure!
Centreville is located in Fairfax County, one of the largest counties in the Commonwealth of Virginia. From Centreville, it's only a one hour drive to the mountains and three hours to the beach. With reasonably priced houses and a great lifestyle, what's not to like?
The following statistics reflect the real estate market in Centreville, Virginia: