This past year has been an interesting one. The COVID-19 pandemic shut down most of the world for a time. While many industries suffered, the real estate market has soared to new heights! Home sales have skyrocketed, becoming increasingly competitive as buyers rush to purchase while mortgage rates have hit record lows.
Stimulus packages, lower rates, and the increasingly appealing work-from-home lifestyle have consumers wanting more; space, home amenities, and overall better quality of life after being cooped up this past year. With the economy bouncing back, people feel comfortable with spending and are confident they can receive a high return on their investments.
In Northern Virginia and the DMV in general, the market has always been hot. Urban migration, along with our nation's capital brings people from all over the world to work for the government, military, private contractors, etc... Virginia has had over 380,000 people migrate here since the 2010 national census, most of whom credited to NoVa. With an ever-increasing influx of new residents, the demand for personal property has risen. What does this mean for the rest of 2021?
In February, home sales were up by 27% from the previous year, 10% higher than the prior month. As spring and summer progress, they expect to increase yet again. With the average home on the market being approximately $660,000, it is a great time to be a seller. Multiple offers are higher than the listing price without contingencies are more common than ever in efforts to appeal better than others.
Buyers are experiencing what it is like to be in a high-demand market with little inventory. While mortgage rates are appealing as ever, it can be a struggle to find the perfect home that hasn't already received multiple competitive offers, many high above the listing price. These situations are where having an agent can come in handy. They have access to information through their MLS, broker, and experiences that an average consumer may not. They also negotiate deals on the client's behalf, ensuring that they get the best opportunities available.
As for what consumers want, single-family homes with yards are the most sought-after properties of the moment. It is not unusual for homes to go under contract within a few days after being listed. On the opposite note, condominium sales are suffering. High inventory with low demand has made it difficult for owners to attempt to sell. They either need to rely on location alone or are required to update the property/adjust their pricing. It is certainly not impossible to sell. However, it will usually take more time than a single-family home in these market conditions.
Whether you want to buy or sell, the advantage of choosing the metro area is the transient atmosphere. For a multitude of reasons, people are constantly moving in and out. That bodes well for sellers and buyers alike. Even if the market seems sparse or oversaturated now, that can quickly change in a matter of weeks. If you are frustrated, do not give up! If you are uncertain and in need of guidance, find an agent! The Gillette Team will be there to help you along every step of the way.