The DC Metro Area real estate market has realized steady home value appreciation in the last ten years.
The average detached home in Fairfax County sold for $829,000 in 2011 and now is valued at $929,000 – a 9.8% gain. The average detached home in Loudoun County sold for $722,000 in 2011 and now is valued at $820,000 – an 18% gain. Across the entire U.S., home prices increased by an average of about 10% in 2020.
This is strong growth! But, why is this happening?
In 2020, COVID-19 hit. With economic uncertainty as people were quarantined and laid off, the real estate market slowed and did not experience the typical spring peak. The feds dropped interest rates on home loans to spark the economy. As interest rates dropped, people began to move. Some moved out of the city, and even back in with parents to save money and stay safe, while others saved tens of thousands on a new home.
There were, and still are, more buyers than sellers, so the buyer demand for detached homes, and townhomes, was never fully met in 2020. Some experts believe there was room for 20% more sales in 2020 had there been more sellers.
People who did sell their homes in our region, often realized the value of their appreciated home and also earned thousands over the “valued” price because buyers had the “buyer power” with low-interest rates to afford more on the dotted line for a home they wanted in an area they love.
It comes down to the power of interest rates, supply and demand, and the quality of the investment made. Homes across Northern Virginia have appreciated well, partly because of the economic growth in the area, but also because of the genuine unique beauty of the area and everything it has to offer.
Interest rates are slowly rising again – and that is a good thing because it means the economy is improving. But, as the rates rise, the real estate market will slow down.
It is not too late to make a move to sell your Northern Virginia or DC based home and cash in on the potential return and/or buy a home for the long term. We can help you determine the true value of your home today, in this market, as well as help you navigate the tricky escalation and negotiation process so you get further in life.
Call Tim today (202) 800-0800 to set up a one-on-one free consultation to discuss your home and your options.