I get asked fairly frequently how the real estate market is and thankfully my business is flowing and I am actively working in all sectors of the market right now. I think it is so important to not make “arm chair” judgements about the market based on the media but rather talk about how things are going locally in the region from an insider perspective.
I am going to outline some of the predictions that have been made nationally and then compare them to Northern Virginia. You will see that we just don’t get hit as hard as other parts of the country, not to mention we have an active relocation business in our area, & will have a turnover in the senate plus we are heading the 2024 election season which will result in more turnover in our housing market.
Here is a summary of some of the predictions by the experts on how the year is going to unfold for buyers and sellers across the country.
- Nationally home prices are expected to drop by 5%.
- Rates will slow down buyers
- Sellers will need to rethink their pricing strategies
- Rents will fall
- National Association of Home Builders, said she expects housing starts to drop by double digits nationally in 2023
- Fewer homeowners will sell
Northern Virginia on the other hand will see;
- Northern Vrginians will see a 5% increase in home values
- Buyers are buying down rates and using seller paid closing costs now to get rates in the 4% range and are buying
- Sellers who prep their homes and make them turn key are seeing strong sales at or above 100% of the asking price
- Rents are still higher than they were 3 years ago and inventory is tight for quality rentals
- New construction starts are down but home builders are attracting and retaining buyers with great incentives
- Home sales will remain high-priced & high sale prices mean that homeowners are likely to walk away from a home sale with significant equity gains
If you are thinking of making a move in 2023. Get in touch with me and let’s grab a coffee. I would love to help you make your next move.