Over the last year, there have been varying opinions on the state of the housing market, with some predicting a drop in prices similar to the 2008 recession-which certainly has not occurred. Others have indicated stability. However, with the uncertainty of the economy, fluctuating interest rates and a multi-year low on inventory makes stability far from the line of sight.
The national inventory of homes for sale is currently low, and one contributing factor is that many homeowners were able to secure record low interest rates in 2020 and 2021. This has made homeowners who bought or refinanced at low interest rates hesitant to sell and buy another property with a much higher interest rate. Sellers who price and market their home competitively are seeing positive results with finding a buyer in Northern Virginia. The low inventory continues to find sellers in a strong position as a seller’s market continues.
As we close out Q1 of 2023 we continue to make forecasts on what could happen with residential real estate in the upcoming year and beyond. While there is projected to be slight price depreciation nationally this year, steady appreciation is expected in the future. Against this backdrop, one may question whether it’s wise to buy a home this spring. There are many reasons why buying a home may be a good idea such as avoiding the rising cost of rent, hedging against inflation and as a means of building wealth. Ultimately, the decision to sell or purchase a home should be made with the guidance of a trusted expert and after weighing all the facts, as well as your specific situation. We look forward to the opportunity to be that trusted expert.