Northern Virginia’s residential real estate market looks poised for another dynamic year! As we step into 2024, let’s explore some key facts shaping the market dynamics.
1. Appreciation Trends:
Home values are steadily appreciating across Northern Virginia. The demand for housing remains high, with limited inventory continuing to fuel competition among buyers. This has led to a positive impact on property values. The 2024 NVAR forecast found that despite mortgage rates, home values continue to appreciate. In fact, NAR reported since COVID (Q1 2020 to Q3 2023), in the Commonwealth of Virginia the home price appreciation had increased 42%.
2. New Construction:
Northern Virginia is experiencing a surge in new construction projects. New construction slowed during COVID and now developers are playing catch up. The lower rate of new construction during the COVID years has contributed to the housing shortage. Developers are capitalizing on the demand.
3. Technology Hub Influence:
As the region solidifies its position as a technology hub, attracting major companies and talent, we expect an influx of professionals seeking housing in Northern Virginia. This influx is likely to contribute to sustained demand for housing, impacting both sales and rental markets.
4. Interest Rates:
Bright MLS predicts in 2024 mortgage rates will come down from their two-decade high, settling in between 6 and 6.5 percent.
While affordability will remain an issue, lower rates and more homes on the market will bring more buyers to the market. The national market report said there is “no evidence to suggest that there will be major, widespread home price corrections in 2024. … Right now, the outlook is for a mild and short recession in 2024, which will not have a major impact on the housing market.”Sellers can still benefit from the favorable market conditions, but pricing strategies should be aligned with the evolving landscape.
In conclusion, whether you’re a buyer, seller, or investor, staying informed about market trends and conditions is key to making well-informed decisions.
Reach out to us for a personalized approach to your real estate needs. We look forward to helping you navigate the exciting opportunities in the Northern Virginia housing market in 2024 and beyond.