Tug-of-War in the Northern Virginia Real Estate Market: What Buyers and Sellers Need to Know
Tug-of-War in the Northern Virginia Real Estate Market: What Buyers and Sellers Need to Know. There is volatility happening in our local real estate market and you can feel it when you are working with buyers and sellers. The tug is between sellers who just aren’t all that interested in selling & buyers who are experiencing the elevated mortgage rates driven by the Fed.
Buyer demand for homes has remained steady despite low inventory & high rates because rents keep going up! While affordability concerns have sidelined some buyers, others have remained in the market and have been the driving force for the continued “sellers market”.
Buyers are adapting to the higher interest rates and although NO ONE likes to hear this rates are still historically low compared to even the 1990’s. Top that off with the prediction that home prices are going to soar in the not too distant future once rates settle back down, some buyers say they will pay a higher mortgage now, refinance in the future and take the short term hit for the long term equity gain.
Some sellers may be concerned about the future of the economy as we enter an election year. Additionally, the stock market has been volatile lately with recession concerns. Leading some sellers to hold off on selling their homes until the economy is more stable.
Some sellers may simply be happy in their homes and not want to move. They may have lived in their homes for many years and have built up a lot of equity. They may also have strong ties to their community and not want to leave.
There are a number of reasons why sellers might not want to sell their homes right now in 2023. It is important for sellers to weigh all of the factors involved before making a decision about whether or not to sell.
The Northern Virginia market is being driven by a number of factors, including;The strong economy, the high demand for housing and the low inventory of turnkey homes for sale.The real estate market is expected to remain vigorous through 2023 but not too crazy. In my opinion, there are great opportunities for sellers and there are even opportunities for buyers and the tug of war will continue for the foreseeable future.
One fact remains that having a Realtor like me on your side is the best first decision you can make. I can listen to your needs, establish a plan for success and help you execute a buy or sale. Call me to discuss your future real estate plans.
