It’s hard to believe that one year has passed since our world changed with the Pandemic. There have been so many changes in our daily routines, the way we interact with each other, how we conduct business, and so much more. The hardest part for many of us was that we lost loved ones or could not visit them due to restrictions. Let’s hope this all changes soon with the vaccine.
As far as the real estate world goes, it has remained resilient and has even thrived. To some, it may be hard to believe, but true. Historically low-interest rates, crazy low inventory levels, and high demand resulted in a frenzied market over the last year. Housing gained over $3.1 Trillion in equity in 2020 as prices escalated in almost every market around the country. We are only a little over two months into 2021, and we continue to see a strong housing market. Inventory remains extremely low, rates have ticked up slightly but are still very attractive, and buyer demand remains very robust. The biggest concern remains the low inventory. We continue to see multiple offer situations in all price ranges throughout Northern Virginia. Many times, contracts are being submitted without the buyers even seeing the home! Crazy but true. Buyers are conducting pre-offer home inspections, waiving all contingencies, and are bidding 10-13% over the list price to get into a home. I believe we will be in this type of market for the next few years. Unfortunately for buyers, I don’t see a flood of houses coming on the market to cover the demand that is out there today. Interest rates will remain low to help keep the market moving. We continue to have low unemployment relative to other parts of the country, so people are continuing to relocate to our area. Couple all of this with the Millennials entering the market as home buyers; it’s quite the tsunami.
If you are considering selling or buying a home, it is more critical today than ever to have a professional representing you. Expert negotiation skills and market knowledge are essential in this aggressive market. Please feel free to call me to review your situation in more detail or allow us to help someone you know. I am always happy to help.
I am looking forward to warmer weather and more hours of daylight, and I hope you are too. Happy Spring!