In the past year we’ve seen the Northern Virginia Real Estate market moderate itself after an explosive 2013. There were fewer home sales in 2014, and home values rose more slowly than in the previous year.
In North Arlington and other key ‘micro’ markets in Northern Virginia, the market moved from a seller’s market to a more balanced market over the course of the year.
So what is this year shaping up to look like?
Well, the consensus amongst economic experts is that interest rates will rise, and that first time home-buyers will become a driving force in the market. The number of 25-to-34 year olds is set to be the largest in US history this year, and all signs point to a lot of people in that age group purchasing their first home in 2015. New construction starts are also on the rise, and should continue to rise this year.
What this means in North Arlington and other desirable areas inside the beltway is that the lower end of the market is going to see a lot of competition among buyers. Both first-time home buyers and developers will be competing for single family homes under $1,000,000.
At the same time, the higher end of the market, which has been a far more balanced market over the past two years, should remain fairly balanced in the coming year. Home prices will rise moderately over the course of the year.
If You’re Thinking of Buying or Selling…
If you’re looking to sell a home this year, list it as soon as possible. Inventory is projected to rise slowly throughout 2015, so getting your home in front of the Spring buyers before this happens makes sense. If your home falls into a price range that is attractive to first-time buyers, this is even more important. Competition between buyers will be highest in the Spring, and chances are good that you’ll get the best price for your home in the next three months.
If you’re looking to buy this year, I would wait as long as you can. The market always cools off in the summer months. There are good deals to be found in those months, when inventory is higher and the pace of home sales slows.
Of course, this is just general advice. Everyone’s situation is different, and that’s why speaking to an experienced Realtor® is the first step in figuring out a strong plan of action for buying or selling in the coming year.
I always love to speak about all things Real Estate and home building, so please feel free to call or write me anytime.
Cheers to a happy and healthy 2015!
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