Northern Virginia is one of the fastest growing areas in the United States. The towns of the Northern Virginia area closest to Washington DC are seeing the highest amount of growth compared to towns further from the city. This rate of suburban growth is expected to continue as more workers relocate to the booming Washington DC job market. 2015 was a sellers’ market but late 2016 into early 2017 hold many unknowns.
Reasons behind the uncertainty
The market has remained stagnant for sellers in 2016 with Northern Virginia buyers in the driver’s seats. There are a few reasons why the housing market is remaining relatively consistent with previous years’ prices. Listed below are some of the reasons:
- The 2016 Election: People in the United States are less likely to purchase a house at this time as a period of uncertainty begins with a new president. That uncertainty with a new president can scare away some buyers as they look to get a new house. While the presidential election may slow down home sales in the spring and the fall, it will most likely pick up at a more accelerated pace in the winter and spring. That acceleration in homes bought will come after there is more certainty with the president elected.
- Rising Mortgage Rates: Interest rates on mortgages are set to rise in 2016. There will be a split in home buyers though as mortgage rates go up. Some that are looking to get a house may purchase before the interest rates go up. Others may try and wait it out to see if the interest rates on mortgages go back down. Interest rates may go from 3.75% to over 5%. That is a big change in money when you talk about the price of a house.
With change in the air, Washington DC housing sellers may put their real estate dreams on hold and stay put. Home buyers face plenty of ambiguity that may ultimately keep them on the sidelines too, but the best rates may be available for those that act quickly. It is almost certain that the Northern Virginia housing market will continue to grow in coming years.
Considering a move to Northern Virginia or Washington DC? Gene Mock and his Premier Team is happy to discuss market fluctuations and show you the latest listings and current market trends in your neighborhood. Call 703-342-8100 today!
Change is in the Air in the Northern Virginia Housing Market