Tax Reform Impacts Not Hindering Northern Virginia Buyers, Sellers;
January's Home Average, Median Sales Prices Climb 3 Percent,
Pending Contracts Rise 15 Percent; Economic Outlook Remains Favorable,
Reports the Northern Virginia Association of Realtors®
Fairfax - While 2017 homeownership rates have reached the highest level since mid-2014 according to Census Bureau data, and 2017 home prices reached new highs for the past decade, we are starting this year off with solid rises in home values, said Lorraine Arora, the 2018 NVAR Chairman of the Board and Weichert, Realtors® Fairfax regional managing broker.
"With our local economy thriving, the nominal predicted interest rate hikes are a signal of our strong national economy, despite the inventory shortages. All of the business growth reported locally and nationally bodes well for consumer confidence."
If such robust growth continues, explained Arora, then this year's Northern Virginia housing market will likely increase by 2 percent compared to 2017 sales numbers.
Suspecting that Northern Virginia housing will see an early, strong spring market, Rob Allen, a 2018 NVAR Board member and Long and Foster Realtor® in Reston, remains confident that houses that show well and are priced right will be snapped up quickly. "I'm seeing buyers eager to act on homes that fill their needs as inventory remains extremely low," he said "It's not uncommon to find you are in a competitive bidding situation right now.
"Conversations with my buyer-clients have centered more around strategies for putting together a well-written and competitive offer and less about the possible implications of tax reform," Allen said.
"From a seller perspective, I'm finding it an appealing time to be on the market," Allen said. "Houses that are competitively priced from the start are going to be in great shape."
According to Ryan T. Conrad, NVAR CEO, "In 2017, NVAR Realtor® members conducted 22,555 transactions valued at $13.1 billion; both figures are the highest since 2005. We had an average sales price of $579,498 - one of the strongest on record for our region. Such data points indicate a strong market."
Understanding the new normal, Ryan noted, "We are not minimizing that the rising interest rates are inevitable to help combat inflation. However, housing markets nationwide have been thriving, just as we have been in Northern Virginia. We fully expect that real estate in Northern Virginia will continue to show strong metrics, remain stable and provide long-range equity for serious homebuyers. Such savvy clients are not intimidated by what goes on in politics."
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