Real Estate Is Local, not National, and Our Market is Hot!

I know real estate agents are notorious for presenting a rosier picture of the housing market than what really exists, things truly are rosy in our local market!

With my blog, I have tried very hard to stick to the facts and cite the sources that I get my statistics and information from so that it is clear the information is not just my opinion but is backed by real numbers. In doing this though, there is a danger of dampening consumer sentiment, which all real estate agents know is going to be a huge factor in our housing market recovery. When consumers feel real estate is a safe, wise, and good investment, they will start to buy again; and when they start to buy again, the housing market will start to recover. Is it any wonder that the National Association of Realtors wants to help consumer sentiment improve with regards to housing?

It’s important to remember that real estate is local, and our market continues to be one of the strongest, if not the strongest housing market in the nation. While many of the nation’s largest cities continue to see huge declines in value, the DC Metro area actually saw a 4% annual improvement in the latest Case-Shiller Housing Index.

Northern Virginia has always been unique when it comes to unemployment and housing. We never experienced the high unemployment numbers that the rest of the country experienced. Our housing market, although it lost value, never lost as much value as other metro areas. These two factors go hand-in-hand; as long as people stay employed, the likelihood of mortgage defaults remains low. As long as foreclosure levels remain low, housing values will remain stable.

The other thing that Northern Virginia has going for it is that the foreclosure process does not drag out for years–giving us a better opportunity to more quickly work through the foreclosure inventory that puts downward pressure on values. According to RealtyTrac, the national average for the foreclosure process is 318 days. New York averages a whopping 966 days. The two states with the shortest timelines are Texas with 92 days and Virginia with 106 days.

Most experts agree that now is a great time to buy, but those of us that live in Northern Virginia have even more reason to feel secure in purchasing a home here.