A Smidge of Normal in an Abnormal Year in Real Estate

Would you believe me if I told you that the median home price year to date in Fairfax County is 3.8% higher than last year?

That's within the margin of the historical norm of about 4% annual appreciation.

This was during an otherwise abnormal year that saw the highest mortgage rates in more than 20 years, inflation soaring (and easing somewhat), and uncertainty across the globe.

Yet, our housing market keeps chugging along resiliently.

But get ready because we may be in for another wild ride this Spring. Especially if inflation looks to be tamed and the Fed stays steady.

I don't think it will be 2021 wild with 20% appreciation and 10 - 20 offers on every property. Still, I wouldn't be surprised to see bidding wars and appreciation in our area that exceeds the national averages.

Remember that we still have tons of pent-up buyer demand just waiting to pounce.

First, many people are on the sidelines trying to ride out the increased mortgage rates.

Second, we are still between 6 million and 10 million homes short of where we need to be nationally to meet the demand.

And that last point is a structural problem that will likely take 10 years to resolve, and only if policies are enacted to make it possible.

I guess I'm trying to say that if it's time to move, it's time to move.

We are having a relatively normal moment in the market right now.

So, take advantage before abnormal catches up, and you'll have to adjust all over again.

Reach out, and let's strategize!