Northern Virginia 2017 Predictions
There’s some good news and there’s some bad news.
First, the bad: mortgage rates have shot up since the election.
From a low of 3.47% on November 7th, the average fixed 30-year mortgage rate increased to over 4% by the end of November. They are at 4.19% as of December 2016.
Economists are saying this kind of volatility is likely to continue, with day-to-day changes driven by the moves and statements of the incoming administration.
At the Northern Virginia Association of Realtors Economic Summit, Terry L. Clower, PH.D. with the Center for Regional Analysis at George Mason University provided us with a positive economic outlook for our area. The below graphs are credit to their great work.
The good news is that there are plenty of reasons to be optimistic down the line.
Our Northern Virginia – DC Metro area has seen significant price increases since 2009. We have almost rebounded back to 2005-2006 prices. We should expect to see 1-3% increase year over year going forward.
Our Northern Virginia – DC Metro area has also seen significant job growth in the last few years. The more jobs created adds more people coming into the area looking for homes. This is great for the local real estate market.
Promised tax breaks could reinvigorate sales of luxury homes, which have seen a glut lately.
This could have a ripple-down effect throughout the rest of the real estate market, spurring sales and construction of mid-level and lower-priced housing.
Also, looser regulation could further stimulate construction and make it easier for buyers to obtain mortgages.
And while these are long-term improvements to look forward to, there’s one thing to be grateful for right now:
One way or another, the election is finally over.
You might have seen that the stock market has been surging in the past few weeks.
That might be a vote of confidence for our President-elect and his anticipated business-friendly policies…
… and it might also be a sign of relief that the election and the associated uncertainty are done with.
It certainly seems things are getting back to normal as people come to realize the world’s not ending.
In fact, many people who were waiting on the sidelines while the election was going on are now entering the real-estate market.
We know the economy is going strong when we look at the unemployment rate. In Northern Virginia an unemployment rate under 4%. This is considered to be full employment and a very good sign for the 2017 real estate market.
It’s a great time to take advantage of this if you are selling.
Home prices are near record highs. If you’d like to get an idea of what your home is currently worth, fill out this form for all Northern Virginia & DC Metro homes:
And if you’re looking to buy, there are two things you should know.
First, even though mortgage rates have gone up, they are still historically very low, and worth taking advantage of.
Second, many new homes have entered the market since the election. Turn over in the administration adds to many new homes becoming available.
It’s definitely worth investigating what’s available around DC right now.
When ready to find your Realtor to sell your home, see Our Marketing.
And if you want to talk about the election and where the real estate might be going in the coming months, give me a call at 571-339-9717. I’m here to help.
Kevin Bailey 571-339-9717