A constant question I get asked is, “is that it?”
Northern Virginia is a unique little spot where the statistics show an increase of 30,000 new jobs in 2012 and an overall housing supply that has grown very little. And you really didn’t have to go to college to grasp the concept of what happens when demand exceeds supply to understand that we have a housing shortage.
If you haven’t seen the movie or read Joseph Heller’s novel Catch-22 then know it is worth your time. Set during World War II, Heller sets up situations that can’t be resolved logically due to rules and regulations. Frustration rules the day!
Real Estate Buyers moving up face a Catch-22
In the Fairfax County real estate market, for example, there is a Catch-22 type of problem for people have who want to move up to a new home but can’t find one that they like. There aren’t many new homes being built under $850,000 so they have to wait for people in their price range to retire, die, get divorced or follow the other Baby Boomers and downsize to a hip urban condo in Arlington. (…yes, it’s your destiny.)
And, while they wait, they have decided to not put their homes on the market.
As a result, those home buyers down the chain can’t move up either. Following?
That is why I hear, “is that it?”
Although this is a median price chart, notice the subtle rise in prices over the past three years graphed out here. Especially interesting is that 2012 did not have the price dip seen in years passed.
Each local real estate market is unique like these two:
So it isn’t just you who is waiting for a new home to pop up on the market. There is a lot of competition so I forecast that the northern Virginia real estate market in 2013 will continue to demonstrate these trends.
Let me know if you have questions or want a detailed chart on any local zip code.
