The Northern Virginia Association of Realtorsreports on December 2021 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. NVAR HERNDON CENTER With competition still high and interest rates rising, a growing number of Virginians are dropping out of the home buying market entirely, according to a recent survey of realtors. For that reason, it is highly expected that these markets will continue to grow in both inventory and prices, which will maintain their status as sellers markets in the Northern Virginia housing market forecast for 2022. In CNBCs 2022 ranking of the. The data is calculated based on the average rent of similar property types across the market, while also taking into consideration the average expenses and costs related to the investment as well as the most common type of mortgage that investors use. "I expect that rapid price increases in homes will soften with escalating inflation and mortgage rates, but it's unlikely that homes will lose value in our market. Buyers will experience competition in the area, but depending on the housing type, its not as competitive as other Northern Virginia areas, so you may be able to get a teeny bit more for your money. That supply-demand imbalance is really at the core of what's driving up prices. I separated these markets depending on their preferred rental strategy based on the cash on cash return that short-term or long-term rentals have in each market. But those racial disparities are compounding, according to U.S. Census Bureau data, and Price said home ownership gaps along racial and economic lines are worse than theyve been in decades. Plus, its more affordable than other comparable locations. Anderson Road is particularly attractive to builders right now, and new construction homes are starting to pick up, she said. The Northern Virginia Association of Realtorsreports on January 2022 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. 8407 Pennell Street, Fairfax, VA 22031 | MAIN: 703.207.3200 | HOURS:8:30 AM - 5 PM Del Ray is always popular because of its community culture, eclectic mix of architectural styles, artsy downtown, popular Saturday farmers market, and proximity to Potomac Yard, Isaacs says. Not to mention all of the new apartments, condos, and hotels that are coming up by the metro in Tysons. With a massive surge in home sales, to a shortage of supply, to a drastic increase in home prices the past couple of years have been a roller coaster in Virginia as well as the U.S real estate market in general and with the start of a new year, we bring you a 2022 forecast of the Northern Virginia housing market. The median price for homes nationwide was $375,300, up 15 percent from March 2021. And with a significant pipeline of millennial and Gen Z first-time homebuyers, housing will likely play a major role in the future development of the state. Top Airbnb Cities in Rural America Earn Over How to Estimate Airbnb Income Before Buying a Rental Property, How to Get Access to Airbnb Data Analytics, How to Get Access to the MLS Database Without a License, Airbnb Rental Income in 2021: The 100 Best US Cities, The Complete Guide to Finding the Perfect Airbnb Investment Property in 2022. There are already signs that Virginias home affordability crunch has broad consequences on both an individual and statewide level. The Northern Virginia Association of Realtorsreports on April 2022 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. I will also provide you with lists of top cities in terms of the fastest growing and best cities for investing in rental properties as part of this Northern Virginia housing market forecast 2022. Its a suburb that doesnt feel so suburban, thanks to its proximity to DC, the walkable, cobblestone-street neighborhood of Old Town, and its amenities and decently sized townhomes and single-family homes. These were the fastest-growing markets in 2021. This means that they will need to move back to urban areas in order to resume their lives. While sales pace is expected to be slower in 2022, impacted by inventory growth for some locations and home types, rising rates predicted for Q2 and buyers being shut out by record prices, we believe the market will remain strong, says Compass agent Susan Isaacs. , particularly compared to White families. So if we say we dont want any new single-family housing at all, the problem we run into is that people will just move to Raleigh. Due to the surge of buyers across the state in 2020, and the inventory shortage that followed, prices in these cities soared due to the large number of investors who were flocking to these markets. Anderson Road is particularly attractive to builders right now, and new construction homes are starting to pick up, she said. The second and third lists are the top cities for investing in rental properties at the start of 2022. (Sarah Vogelsong/ Virginia Mercury). McLean is a popular area, mainly because of its school district, and according to Keller Williams agent Nicole Jamil, Its getting a bit crowded. Once youve found properties for sale that youre interested in, you can use our Investment Property Calculator tools to analyze each property and each neighborhood in order to find the perfect property for you that is projected to be a profitable investment. The last time rates reached this level was in April 2010 when they hit 5.21 percent, according to Freddie Mac. Based on Mashvisors data, these cities are profitable for investors looking to turn their property into a traditional long-term rental home. This neighborhood is about three miles from DC, less than two from the Pentagon, and adjacent to the Fort Myer Army Base with a lot to offer. It is projected that house prices will still increase by 4% in Northern Virginias housing market in 2022. The number of new listings in April was down 14.3 percent from a year before, meaning buyers had 2,600 fewer opportunities than they had then. The 30-year fixed-rate mortgage averaged 5.11 percent for the week ending April 21, up from 5 percent the week before. Without those, its possible that a growing number of Virginia residents will simply find new places to live, especially with telework offering more flexibility to white-collar employees. And thats exactly what were seeing., GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX, by Kate Masters, Virginia Mercury July 13, 2022. But those racial disparities are compounding, according to U.S. Census Bureau data, and Price said home ownership gaps along racial and economic lines are worse than theyve been in decades. This will likely lead to home prices going down to more competitive prices this year as sellers try to navigate the decreasing demand in these markets. But, from what we know so far about the U.S housing market going into 2022, all indicators show that it will continue to be a sellers market in general and that prices will continue to increase across most markets. Copyright 2017 NVAR. Read: How to Sell Your House Fast: 11 Tips. And with a significant pipeline of millennial and Gen Z first-time homebuyers, housing will likely play a major role in the future development of the state. But we expect it to start to slow down as more people are unfortunately getting priced out of the market.. The higher sales prices are a result of a persistently high demand in many nooks and crannies of Virginia, said Virginia Realtors chief economist Ryan Price, who added that while the market may cool in the months ahead, there is minimal risk of a doomsday scenario. 520 Huntmar Park Drive, Herndon, VA 20170 | MAIN: 703.207.3213| HOURS:8:30 AM - 5 PM New residential construction in Richmond. Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more. Andrew Clark, vice president of government affairs for the Home Builders Association of Virginia, told lawmakers that parts of southern Virginia including the. During the 2010s, the majority of Virginia counties lost population to migration, particularly in Northern Virginia, which is seeing a significant loss of young families. An upscale urbanburb with character, it features single family homes in a variety of architectural styles (mostly late 1800s through the 1950s). Using our intuitive interface and simple-yet-effective filters, you can use our Investment Property Finder to easily narrow down your search based on your criteria, such as the propertys price, the projected returns, or the type of property you want to buy. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. "The stronger indicator is the average sales price of homes compared to last year, and that shows an increase of 12 percent over last year.". Follow Virginia Mercury on Facebook and Twitter. NORTHERN VIRGINIA Northern Virginia saw a nearly 5-percent decline in home sales in March compared to the same month in 2021 due to a low inventory of homes on the market and higher mortgage rates, according to the latest data from the Northern Virginia Association of Realtors. The Mercury brings you coverage of the commonwealth's biggest issues from a team of veteran Virginia journalists. Stephanie Shipman January 21, 2022. National Landing is still hot for its access to all things Amazon and Arlington, proximity to DC, transportation options, and new construction condo and apartment pipeline. Additionally, mortgage rates are also expected to rise by around 4% in 2022 according to the Virginia Association of Realtors. A shortage of available homes in Virginia is pushing up prices and slowing sales, raising the risk of long-term affordability challenges that could slow the states growth. National Landing is still hot for its access to all things Amazon and Arlington, proximity to DC, transportation options, and new construction condo and apartment pipeline. In this forecast, we will take a look at the housing markets performance in the past two years, both in the U.S and in the North Virginia market, to get a better picture of where the market is headed and how the different cities in Virginia are looking in terms of their viability for investment. The data, presented Wednesday to lawmakers on the Virginia Housing Commission, reflect trends that are likely to have a major impact. The neighborhood is made up of Crystal City, Pentagon City, and parts of Alexandria, but its also pushing growth and demand in the adjacent neighborhoods like Ballston, Clarendon, and Rosslyn. new construction has also been affected by delays in permitting and inspections, backlogged supply chains, labor shortages, and increases in the cost of building materials. Nonpartisan. By The following info is based on Mashvisors market data during the month of December 2021, and it reflects the markets medians and averages based on the data that Mashvisor gets from several sources including the MLS, Airbnb, Zillow, and others. Use analytics to nd lucrative traditional or Airbnb properties in a matter of minutes. . She was named Virginia's outstanding young journalist for 2021 by the Virginia Press Association. Kate grew up in Northern Virginia before moving to the Midwest, earning her degree in journalism from the University of Missouri. Investing in the Houston Real Estate Market in 2018: Yes or No? Despite high mortgage rates, homes going on the market in Northern Virginia are selling quickly. But if buyers are flexible, there is more land in other areas that are very close to McLean, like Falls Church or Pimmit Hills, which is zoned for part of Falls Church.. Its also a very easy commute to DC. The Cash on Cash Return Calculator: The Ultimate Real Estate Investing Tool! Mortgage rates reached their highest level this week in more than a decade, CNN reported Thursday. Our Northern Virginia housing market forecast 2022 predicts three major trends to take place this year: Despite a small number of predictions that home prices might decrease in 2022, most indicators show that the trend of increasing home prices will continue in 2022, but at a slower pace. As a result, average mortgage payments have also risen from $1,300 a month in May 2017 to $2,238 in May of this year, increasing the estimated income needed to afford a home (the analysis was based on a 30-year fixed mortgage rate, Price said). In this part of the Northern Virginia housing market forecast for 2022, lets take a look at 24 of the most exciting markets to keep an eye on. Those pressures have been building for years, particularly since the start of the COVID-19 pandemic, when falling interest rates drove record home sales. Virginia Mercury is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. There is too much competition there, and its very low on inventory. Comparing Mortgage Rates Today vs June 2022. The drop in the number of homes that sold in Northern Virginia tracked the national trend, where the decline in home sales was 4.5 percent in March from a year ago. Read: How to Find Deals When Housing Inventory is Low. You really want to grow with the market, Hamilton said. Zillows latest report predicts an increase of 11% in overall home prices across the U.S, while other sources offer more conservative predictions: The only exception is the Mortgage Bankers Association forecast model which projects a 2.5% decrease in the median price of existing homes by the end of 2022. It is also predicted that in 2022, demand will shift back from suburban and rural areas toward urban areas and near employment centers in cities. Despite the higher prices, it was a challenge to convince some vascillating homeowners to get their properties on the market. Virginias real-estate market reported seasonal vigor in April, despite being held back by inventory issues and rising national economic woes. However, now that life is slowly heading back to normal, it is expected that offices will reopen and employees will be expected to have hybrid work schedules that include office days. While the growth rate has slowed down in 2021, it by no means stopped or showed signs of stopping. The real estate market is still hotand in the Northern Virginia area, that means borderline insane. While this doesnt offset payment shock associated with higher rates, it does open the door to buyers who were being held back in that price range by the need for a higher down payment., The neighborhood is made up of Crystal City, Pentagon City, and parts of Alexandria, but its also pushing growth and demand in the adjacent neighborhoods like Ballston, Clarendon, and Rosslyn. Whole Foods is the central amenity in The Boro, along with several shops, restaurants, and big box stores, like the nearby Walmart and HomeGoods. Northern Virginia Quarterly Rental Statistics are available as PDF documents. Stolen Vehicles, Theft Of Gold Necklace: Falls Church Crime Report, Falls Church Residents Join Pan-Mass Challenge For Cancer Research, Falls Church Kiwanis Little League Registering For Fall Season, Antique Silver and Brass Restoration Services: MONDAYS 10-4, Community Ice Cream Social for National Night Out, Redeemer Renaissance K - 6th Grade After-School Program 2022-23, Shoff Promotions Comic Book & Sports Card Show, Window Treatments: Where Elegance and Functionality meet, Teacher - Redeemer Lutheran Preschool in McLean. Even buildings in the area that are older, like Rotunda, which was built in the 1980s, are getting popular because of great amenities that are all walkable or a short drive away, Jamil says. These Will Be the Hottest Up-and-Coming NoVA Neighborhoods in 2022, This Leesburg Haunted House, Once One of the Scariest in the U.S., Is Closing its Doors, The Magical World of Harry Potter Is Heading to Leesburg This Fall, 5 Over-the-Top Indoor Golf Courses to Try in Virginia and DC, This Reston Resident Was Behind Some of the Most Influential (and Life-Saving) Disguises in CIA History, These Are the Top NoVA Neighborhoods for Renters in 2022, On the Market: A Falls Church Craftsman Full of Elegant Details, A Luxury Residential NeighborhoodIs Being Built at the Salamander Resort. But Lombard said those estimates are based on nearly decade-old population trends, which have shifted dramatically over the last few years as more Virginians move out of state or relocate from urban centers to more rural areas. But rising prices arent isolated to the states biggest urban areas. The jump followed a steady climb in regional prices over the last four years, a worrying trend in an area where the median household income typically falls below $65,000 a year. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. State lawmakers cheered when, announced plans to move their headquarters to Northern Virginia, but the relocation of both companies, isnt expected to result in many new jobs. Sign up for free Patch newsletters and alerts. With competition still high and interest rates rising, a growing number of Virginians are dropping out of the home buying market entirely, according to a, As scarcity and high prices remain a concern across the state, theyre widening disparities in home ownership. The U.S housing market saw a big increase in home prices in the past two years. In the past year and a half, with the COVID-19 lockdowns and remote work lifestyles, employees no longer had a reason to live in urban areas close to their employment locations, and city life lost its appeal due to lockdowns and social distancing. Median sales prices were up in all reporting areas, mostly by double digits. The Northern Virginia Association of Realtorsreports on May 2022 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. While this increase was at its highest during 2020 when the wave of buyers rippled across the U.S, the increase in prices continued throughout 2021, although at a slightly slower pace. Contact Editor Sarah Vogelsong for questions: info@virginiamercury.com. Home prices will rise at a lower rate than they have been, but there are no apparent risks of a price drop across most local markets, he said.With about 15,500 homes on the market at the end of the month down 11 percent from a year before the total months of supply stood at 1.2, down from 1.4 a year ago and tilted decidedly in favor of sellers. The NVAR region currently has about two weeks of inventory, which means it will take about two weeks for all the homes currently available for sale to be under contract. Lower-income Virginians are also disproportionately impacted by an increasingly unaffordable market. The Northern Virginia Association of Realtorsreports on March 2022 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. With the real estate market continuing to heat up, you may see a bidding war erupt in these local neighborhoods. Please keep in mind that laws and regulations related to short-term and vacation rentals are constantly changing and evolving, and this type of renting can become heavily regulated at any moment based on your city and states laws. In 2022, it is expected that the supply will start to catch up with the demand again, which will deaccelerate the increase in house prices. For more housing market updates around NoVA, subscribe to our Home newsletter. According to Lombards analysis of IRS data, areas including Raleigh and Charlotte in North Carolina have been top destinations for residents leaving the state, a trend likely influenced at least in part by single family home prices that are at least 50 percent lower than in Fairfax County, Alexandria and Arlington. One factor that is affecting home supply is the lack of new homes being constructed due to challenges and restrictions that construction is facing, such as material price surges, regulations, labor shortage, and supply-chain problems. Firstly, the interest rates on mortgages are expected to increase further this year, which means that fewer buyers will be able to enter the market, therefore bringing the demand down, which eventually leads to slowing down the increase of home prices. Fair and tough reporting on the policy and politics that affect all of us is more important than ever. Housing inventory was down almost 22 percent in Northern Virginia in March from a year ago, compared to a 9.5-percent decline on a nationwide basis. It also offers a reasonable commute to DC and is less than 15 minutes by bike to Old Town. Rising rates will cool demand in the months ahead, Price predicted. Or looking for the best place to buy a house there? READ ALSO: NoVA Remains Sellers' Market As Homebuyers Await Spring Inventory. Finding a solution to housing affordability in Northern Virginia is important to the "growth and vitality of our region," McLaughlin said. Web Design and Development by Matrix Group International, Inc. . Popular parks and great schools abound, and the neighborhood shares amenities with nearby Clarendon. Federal statistics show that Black Virginians are far less likely than other groups to own their own homes or get a mortgage loan approved, particularly compared to White families. He loves writing about all aspects of the real estate investing business with focus on market and property analysis and the best sources which every real estate investor needs in order to succeed. This led people to move to rural and suburban areas where life was more appealing at the time. (On the plus side for buyers, the number of active listings increased almost 14% from March to April, proving that the seasonal nature of the market is back. While sales are down, prices keep rising. "The number of homes available between February and March increased a little under 25 percent, which feels like a big jump in inventory until you look at March 2021 and see that inventory is down almost 22 percent from the same time last year," Rob Traister, a Realtor and Associate Broker with RE/MAX 100, who is licensed in Virginia and Maryland. While many are still renting, Hamilton said surveys still show a strong preference for home ownership and more space, borne out by the rise in demand for rural exurbs, Across cultural lines, home schooling has boomed since, Va. birth rates have declined, but regional differences tell, Can Southwest Virginia remake itself as a laboratory for. Make sure to always consult your real estate agent or legal advisor so that youre aware of all laws and regulations that might affect your investment in the short term and long term. Your source of hometown news for Arlignton, McLean, Great Falls, Vienna, Oakton and Tysons, Analyst: Fundamentals remain strong in Va. housing market, School Board chair nixes public comment for summer, Superintendent: Summer-school effort largely glitch-free, Va. education leaders talk partnerships at Marymount stop, New crisis-prevention hotline seen as step in right direction, Fairfax to get cash from state opioid settlement, Langley High student aims to connect D.C. students with books, berries, Fairfax superintendent: Were 97% staffed up for fall, Expert: Local area seems insulated from falling home prices, Irish dancers return from Canada with accolades, Legal and Public Notices for May 19, 2022, Effort launched for broad-based tree-planting project. Year-over-year sales volume for the month dipped slightly due to the reduced sales totals, declining from $6 billion to $5.8 billion. A total of 11,991 properties went to closing across the commonwealth during the month, according to figures reported by the Virginia Realtors trade group. Andrew Clark, vice president of government affairs for the Home Builders Association of Virginia, told lawmakers that parts of southern Virginia including the Southside region and southwestern corner of the state also saw a 32 percent increase in home costs over the last year. The Northern Virginia Association of Realtorsreports on October 2021 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. Mortgage rates in recent months have been hovering about 5 percent, still low by historic norms but a shock to the system of buyers who a year ago would have been locking in 3-percent mortgages to borrow for homes.