Despite the doom and gloom in every newspaper or the dire predictions of TV’s talking heads, Northern Virginia is NOT in a true recession. In fact, Northern Virginia is recession resilient. Why?
Because we have job growth. The Washington metro area including Northern Virginia and the Maryland suburbs, ranks fourth for the largest job base in the country, only behind New York, Los Angeles and Chicago, and is one of only 5 metro areas nationwide which continues to add jobs. While the rate of job growth has slowed since 2006, more jobs are still being created.
Look around, mall parking lots are still full, restaurants are still taking reservations and real estate is still selling.
According to the MRIS (Metropolitan Regional Information System) 2008 year end report, “The Washington area economy continues to create jobs, which will fuel demand for housing and help the residential market regain equilibrium. By late 2009/early 2010, we expect that rising demand (propelled by job growth and federal spending) will bring traction to the Washington metro housing market.”
In the meantime, there is an increase in buyer activity so far this year although we are still seeing a large gap between list price and sold price. The average sale price in the fourth quarter of 2008 was 90.8% of list price.
Homes priced at true market value are selling in less time and for a higher price. The more a property is overpriced, the longer it stays on the market and the ratio of list price to sales price increases. Click here to see what the right price means in terms of days on market.
Want to know more about buying or selling your house in the current market? Give me a call at 703.927.4554.
Thanks for stopping by,